Lust Greed Power or Religion? Why Did Henry Break with Rome in 1634?

Henry broke with Rome for many different reasons, to begin with was that the Pope wouldn’t let him annul his marriage with Catherine. He only wanted this because he was in love with Anne Boleyn. Another reason was that he was greedy for money because he had lead an extravagant lifestyle and didn’t want to give that up. He was convinced that if he were head of the church he would get incomes from tithes and taxes. He also broke with Rome because he didn’t like the thought of anyone being above him, he wanted to be the one and only king. To solve this he made himself head of the church so he would have power over the church. Lust was an important factor in the Act of Supremacy because Henry had was no longer in love with Catherine of Aragon and was now lusting after Anne Boleyn. Henry was only going after Anne because Catherine could not produce him a boy, as well as the fact that she was getting old and not so pretty. Anne refused to sleep with Henry until she was married to him; consequently Henry tried to annul his marriage with Catherine but the Pope refused. The Pope wouldn’t let Henry annul his marriage since Emperor Charles V was Catherine’s nephew. Henry thought if he made himself supreme head of the church, he could allow himself to pronounce his marriage with Catherine of Aragon sinful in the eyes of God and his child with Anne Boleyn would be legitimate. For Anne had fallen pregnant with Henry’s child after being persuaded into a love affair with Henry VIII. Greed may have affected Henrys decision to overpower the church as Henry was slowly, but surely running out of money,. If Henry controlled the church he would control the amount of taxes and tithes people had to pay, and if he controlled the church Henry could shut down all the monasteries (which he did in a period called `The Dissolution of the Monasteries 1535’) and take all the money and goods from them. Greed was very important because if he did it right he could control everyone in England. The act of first fruits and tenths was a form of tax on clergy taking up church living. To live like this they had to pay a portion of their first years income and a tenth of their profits annually from then on. Originally the money was paid to the apacy, but Henry VIII's Annates Act 1532 diverted the money to the Crown as part of his campaign to pressure the pope into granting him a divorce. Thomas Cromwell set up a special financial administration for these revenues and they later passed under the control of the Exchequer. During the 18th century, these payments formed the basis of Queen Anne's Bount y. Power affected Henrys decision to overrule the church because Henry already had the power to kill people if he felt they were threatening him, you can see this with his response to Luther and Tyndale, but if he controlled the church he could be like an idol to regular folk. Henry obviously got angry when the Pope refused to annul his marriage with Catherine just because Emperor Charles V made him. Power was the main reason he was the kind of King who felt that he should have total power over his subjects but the power of the Catholic church in the 16th century outweighed that of even the most powerful King. Henry saw a way to end that power in England and use it for his own purposes he grabbed this opportunity and thus the reformation begins. Religion most likely affected Henry’s decision to carry out the Act of Supremacy because he wanted England to be a good place with proper religion and a good understanding of the bible. Maybe Henry didn’t do everything for selfish reasons and he could have done it for the greater good. Henry didn’t want to change the Catholic Church at first but after falling in love with Anne he saw the light and saw how much better religion would have been if he changed the church. The Dissolution of the Monasteries was not only to get money it may have been for religious purposes as well. Cromwell found that almost all the monks were breaking their vows and some of them had kids with nuns from the nearby convent. Uncovering all this showed that the Catholic Church was a disgrace and it was time for a new start. Henry saw this and began the Church of England or Protestantism. In conclusion I think that Lust was the most important factor for it seemed to trigger all the different emotions and seemed like it was most affective. I think that religion was the least important because I don’t think he even cared about it and he just cared about having a son.

The One Man Industry

If success is all there is in life, there would be no room for learning. Failure is an important aspect of one’s life for more often than not, it is through these debacles that one learns the real value of living and the essence of what he has. Amitabh Bachchan, the most popular and highest paid Bollywood actor is the epitome of a wheel. His life has gone through several failings, others serious enough to ruin his name in the Indian society, however, in the face of all the controversies he went through, he still managed to resurface and continue his life.Bachchan is the son of the well-known poet, Harivansh Rai Bachchan and socialite Teji Bachchan. He received his early education from Allahabad’s High School and finished his college art degree in Sherwood College and his science degree from the University of Delhi (bollywoodblog. com n. pag. ). Growing up, he already had his visions of becoming and actor so when he finally graduated, he worked his way to Bollywood. Howe ver, his Bollywood dream was not an easy aspiration to realize.He had to go through several trials before finally contributing his talent to the acting scene. Bachchan first worked as a freight broker in a shipping company in Calcutta (Noronha n. pag. ) then moved to Bombay to pursue an acting career. When he applied for an acting stint, he was refused because his stature was not of a Bollywood actor material. He is 6’3†, too tall for the Bollywood scene and he also had a fair complexion which was not too ideal for an actor (apunkachoice. com n. pag. ).He was given a break though as a narrator after Indira Gandhi, the mother of his friend, Rajiv Gandhi and the Prime Minister then, made a recommendation letter (indiazen n,pag. ). His baritone voice earned him several projects, not as an actor but merely as background voice. It was only after a few years that he was able to infuse the acting scene with his dramatic prowess. His first movie, Saat Hindustani in 1969 was not very successful and did not even earn him an award, nevertheless, it served as his passport to the acting industry.The movie which really gave him his first break was Abhimaan in 1973. This movie gave him the attention he needed to remain in the entertainment world. He starred in this movie with the famous actress Jaya Bahduri, who later on became his wife. They have two children, the other one is also engaged in the film industry (Noronha n. pag. ). After his first successful movie, Bachchan also starred in several others. Among these movies was Zanjeer which placed him on equal footing with famous Bollywood actors.The movie showcases a quasi-revolutionary fervor that is also linked to a private trauma (Mishra 134). Through the movie, Bachchan came to be classified as â€Å"the Angry Man† because of his role as a strict police officer. His portrayal showed rebelliousness, a feeling which was not normally featured in Indian films at that time. The rebellious attitude which h e established in the film did not only give a new taste in the film industry but it also showcased the emotion that was then reigning in the hearts of the Indian lower-middle and slum-dwelling classes (Mishra 134).Bachchan portrayed other roles depicting rebelliousness after the Zanjeer movie. Among the movies that he starred on were Deewar (Wall) in 1975, Sholay (Embers) also in 1975, Amar Akbar Anthony in 1977, Don in 1978, Muqaddar Ka Sikandar also in 1978, Laawaris in 1981, Silisila (The Affair) also in 1981, Namak Halaal in 1982 and Black in 2005. He did many others but these are the top ten movies that he starred on as classified by BBC news (n. pag). All of these films became spectacular and box office hits in the Indian community (entertainmentoneindia n.pag). Bachchan’s flare in the entertainment world cannot solely be attributed to his skills in acting but more on the attitude that he exude in the roles that he played. Unlike the famous actors before his time, he in troduced a new blend in the Indian movies—rebelliousness. He did not fall for the stereotype characters and plots that were reigning then, instead he depicted antagonism and rage. This new blend in the movies was well accepted by the Indians, not only because it was a new approach but also because this was a part of what they were then feeling.The movies which the actor made were more realistic, making the audience relate with what is being shown. Life to Bachchan is not all about romance and happy ending, life is more than that. It includes trials, conflicts and resentment. The approach that Bachchan infused into his films also destroyed the prevalent plot in Indian movies. Films that were prevailing before Bachchan’s time mostly revolved on the character rather than on the story but with his depiction of revenge and anger, the idea of a character was destroyed and the focus was placed more on the story.Mishra (128) enumerates some of the reasons behind the success of Bachchan’s carreer. The first according to the author, is the fact that he was conversant both with the Hindi language and the other dialects. He is the first partition major star who came from the Hindi-speaking heartland of Uttar and Pradesh and who was thoroughly conversant with standard Hindi as well as the other dialects, notably Avadhi (Mishra 128). Knowledge of the language and the dialects was necessary for an actor as this enhances his capacity to better communicate with his audience and beautifully portray the character that he wants to depict in the movie.This also gives him vantage point as compared to other actors who are not conversant with the dialects that he knows because it establishes a closer connection with the viewers. The closer the connection that the actor establishes, the better is the appreciation that the spectators will give to the performance. It must be understood that movies are not just about acting, it is also about communicating with the pe ople and trying to convey a message across. (The second reason for Bachchan’s success is the challenge that he posed) on the figure of the noble, transcendent Rama as the dharmik model of the hero.His roles deployed features that belonged to the antihero Karna in the (Indian epic) Mahabharata while the generic frames of his films destabilized the dominant cinematic form much as the baroque Traverspiel destabilized German tragedy. Finally, he projected this antiheroism into the very modern notion of the angry young man in rebellion and grafted this into the figure of a subaltern hero as an agent of national reconciliation. The rebelliousness thus synthesized reflected the disenchantment, the oppression, the hopelessness of the slum dweller who saw in Bachchan’s acts of antiheroism a symbol of his or her own aspirations.The rags to riches theme that always paralleled the narrative or personal revenge in Bachchan’s films was the imaginary fulfillment if the slum dw eller’s own fantasies (Mishra 128). All of these were not evident in the films that were crafted before Bachchan entered the cinema scene or if they were, it was not as emphatically portrayed as Bachchan did. He said that his commendable performance can be attributed to his genes and the influences of his father’s writings. As a child, he was exposed to the liberal and rebellious writings of his father and this somehow built in his system the same principles that his father advocated (Mishra 128).Many found it ironic that the son of a socialite is espousing the cause of the poor people in India. Nevertheless, his background was not a hindrance to his realistic performance of the lower class Indians. This might have been because of his early exposure to the problems that face the lower class Indian nationals. The source of his acting was not merely dependent on the script—it was beyond it. He was driving source for his acting from his own ideologies which were sh aped by his father’s principles. He had a deeper cause for his performance and exude greater realism.As a result of this, he dominated the Indian movies for quite sometime, leaving no room for the other actors. His influence to the Indian populace was so great that when he met an accident while filming the movie, Coolie, the whole nation prayed for his recovery. There was also a great number of Indians who donated blood for the actor. During the taping for the movie, Bachchan wanted a scene to be realistic so he suggested how the punch should be undertaken unfortunately, the acting got so intense that he ended up in pain.For several days, the doctors cannot find the source of Bachchan’s hurt, until one day, a doctor was able to detect a dark spot on his intestine. The dark spot was his undigested when the punch in his abdomen was made. After seventy-two hours of pain, the undigested food could have turned into poison (Mishra 142-143). His intestine was also ruptured as a result of his fall on the steel table after the punch administered by the stuntman (Chopra n. pag. ) The doctors opted for an immediate operation, however, while he was in the operating table, he lost signs of life.He was declared clinically dead until his wife, Jaya shouted that he saw him move his toe. After this remarkable statement of his wife, the doctors were able to revive him (Mishra 142-143). Throughout the period that he was in the hospital, his supporters speculated that the punch that he received was real and intentional—that it was meant to hurt him. However, no proof was established to back up the claim. After the recovery, Bachchan continued filming the movie to where he left off.He also thanked those who offered prayers for his recovery and the support that the entire nation devoted to him. To date, he is the only movie actor who received such sympathy. People from all walks of life showed all the support they can give and it was as if life in India stopped for Bachchan. Life only returned to its normal shape when it was declared that he is already safe (Mishra 142-143) Aside from acting, Bachchan also tried his luck in politics after he was swayed by his friend Rajiv Gandhi, whose mother was assassinated and won by sympathy vote.Bachchan was elected to a Parliamentary seat, however, this prestigious position did not prove beneficial to him as his name was included to a political controversy. Bachchan, his brother and Rajiv were accused with bribery. It was rumored that the Boffors company bribed Indian politicians to ensure that the government will buy tanks and other military equipment from them (Mishra 144). This hullabaloo seriously injured the name that Bachchan was able to established through time so he decided to quit politics two years after he first explored it.After his flop in the field of politics, Bachchan returned to his first love—film making. Bachchan is well loved by the Indians and his acting widely accepted, however, these love and acceptance were not enough to keep his star shining after the political controversy he faced. Mishra, however, points out that his breakdown in politics is not the direct cause of his collapse as a star. Just like the period when he started his sensational career as an actor, the people then were looking for variety, for something new to watch, the Indians also felt this way at some point when Bachchan was the king of the charts.The people were worn-out with the constant revenge and anger theme in his movies and were looking for something new—for a new approach in movies. This was the time when the need to revive Romanticism was felt. The revival of romance in the films brought back the idea of a character and once again motivation replaced generic predictability, something which Bachchan turned his back on (Mishra 138). For Bombay cinema to survive, the romantic twist had to return. And so, as Bachchan’s star waned, romance returned (Mishra 138 ). After his political stint and cinema flops, Bachchan shifted his attention to a new venture.He created a multi-faceted commercial enterprise known as the Amitabh Bachchan Corporation Limited or ABCL. The company delved in production and distribution of films and other ventures that involved the movie industry. For sometime, the company enjoyed success in producing movies and even catered the Miss World pageant in India in 1996. However, in its latter years, it faced so many debts that it reached bankruptcy (Indiaoye). His failure both in the political and business worlds, prompted him to go back to where he established his name—the entertainment industry. At 55, he filmed his comeback movie, Mrityutada.It was not as successful as his previous movies but it was enough to sustain him in the entertainment field. Two years after his comeback film, he was named in a BBC poll as the Superstar of the Millennium. This title placed him in equal footing with Sir Lawrence Olivier, Ch arlie Chaplin and Marlon Brando. Aside from this, he is also the first Asian actor to be included in Madame Tassaud’s wax museum (hindi lyrix n. pag. ). According to Mishra, Bachchan’s success in his career is not only because of his talent in acting but also because of his skill in building his image outside the theater houses.The author suggests three stages in the life of Bachchan that moulded his image as an actor. First is his relationship with his leading ladies, particularly Rekha. Rekha, the daughter of the Hindi actor Ganeshan, is a tall and good looking woman who exhibited real acting talent. She was one of the few actors then who brought â€Å"real sense of character to the films†. She was suspected by journalists to have established a romantic relation with Bachchan and this suspected relationship was â€Å"extensively documented in the fanzines†. Mishra suggests that this added to the growth of the â€Å"quietly sanctioned counternarrativeâ €  by the actor himself.However, Bachchan imposed censorship when journalists began to pester him (Mishra 140). The affair of Rekha and Bachchan was better revealed in the movie Silsila (Continuity, 1981). In this movie the actors showed what they could not reveal in real life—depicting the love triangle that exists between Jaya, the wife; Bachchan, the husband; and Rekha, the mistress (Mishra 141). In real life, Bachchan denied all allegations of an affair that exists between him and Rekha but the latter had less disavowal in her system. She was more open although not explicitly with the relationship that he has with the Indian icon.Jaya also admitted that girls were a problem with Bachchan but she did not elaborate on his affairs. Bachchan reiterated in an interview that Rekha was just his leading lady and nothing else (cited in Mishra 140). The other two the Mishra talked about were his near death experience while filming the movie Coolie and the Bofors controversy. Dur ing the period that he was in the hospital fighting death and trying to survive, life in India seem to have been brought to halt. Temple houses and mosques were filled with people trying to offer prayers for the fast recovery of their beloved star.The Prime Minister then, his friend Rajiv Gandhi, cut his international trips to see him. The kind of emotion Amitabh has evoked among Indians across the globe is absolutely phenomenal, said film director Ramesh Sippy (Chopra n. pag). To reiterate, Mishra (146) said that no correlation should be made between Bachchan’s failure as a politician and the flop of his comeback movie. According to the author, Bachchan’s return in the film industry and the people’s cold reaction to the movies that he made is not the direct effect of the Bofors deal.Bachchan’s waning as a star can only be attributed to the return of romance in Indian films, something which the actor did not patronize. After his comeback movie, Bachchan b ecame the host of â€Å"Who wants to be a millionare? †. This undertaking proved successful for him as he was able to woo many Indians to watch his show. Movie theaters have adjusted the screening of their movies in order to accommodate the program time of Bachchan’s game show. Moreover, he has also tried acting in other genres like comedy and drama and he also proved triumphant in these fields. It only goes on to say that the king of Indian films has regained his thrown.Aside from going back to the film industry, he has also invaded the advertising industry. He is the most sought after promoter of products such as clothing among others. The Indian icon, now in his 60’s, remain to be active and show no signs of slowing down. Many Indians still look up to him despite his age not only because of his legendary achievements but also because of the way he plays his age. In a BBC new report (n. pag. ), it was stated that Bachchan has made aging cool. He acts his age a nd yet he still manages to go with the flow of modern times, something which only a few could do.More than his acting career, Bachchan is extraordinary for his attitude towards life. Despite the failures he faced and the narrow roads he walked through, he still manages to get up everytime and continue where he left of. He does not allow any fiasco to pull him to the ground level and never get up again. He also has established a certain charm with the Indian people that they keep on accepting him despite his failures and continuously gives him the chance that he needs. Without this charm, he would have had a hard time bringing back the luster of his name in the face of all the controversies that he had been through.Today, he continues to live up his image as the legend of Indian television. It must be remembered that Bachchan’s influence in the movies in India is remarkable because he defied the odds at a time when everyone was into romance. Through his acting abilities he was able to change the genre of the themes in Indian movies and provided variety. Without him, there would have been no variety in the Bollywood films and the film makers would have just stuck with the traditional portrayal of a character in the movie. He introduced innovation and experimentation in Indian movies.His significance as an actor and influence to the Indian populace is indelible because of the great contribution that he made in the movies and also because of the way his movies shaped the minds of the people. From the early 70’s until the 90’s he was the only actor who was patronized by the Indian people. It seemed that he was the only actor then existing thus the title, â€Å"one man industry†. It would take a really brilliant man and a well-skilled actor to be able to dominate the film industry which is considered to be the biggest in the world and holds a record high of movies produced annually in the world (MSN Encarta onlone encyclopedia n.pag. ). T o date, India is the country which has the highest number of movies produced annually registering 800 movies a year (Chopra n. pag). Only a few people could exert such an influence in a such a big industry. Films to the Indian people is very important and well patronized because to them, cinema is not just entertainment. It is all about passion. Since the dawn of film production in the country, the entertainment industry has produced 27,000 films in 52 languages. Everyday, people in India flock the 13,000 movie houses in the country and enjoy the song and dance that the movies offer (Chopra n.pag). Many of the films that Indians produce come from the factories of Mumbai or Bombay. The film industry in Bombay is what is known was Bollywood it is India’s Hindi film capital and the home of ten sprawling studios. The movies that are produced in this part of India have ranging budgets, some start big time amounting to five million dollars while the others have to content themselve s with a meager fund of fifty-thousand dollars and create the movie within ten to fifteen days.Many parts of India are also flustering with movie producers but nothing could still match Bollywood, the industry where Bachchan established his name. Bollywood according to Chopra has a wider audience reaching to Indians who are scattered across the globe and the stars are considered gods. (Chopra n. pag. ). Through the years, many changes have also been undertaken in the Hindi films. It has leaped giant steps in terms of the technical production but its themes are leaping like babies, one small step at a time. The themes that it used to foster traditionally remain to be evident in Hindi films. (Chopra n.pag). This only shows that Hindi films can hardly be infiltrated and changed overnight as they are influenced by culture and tradition and it took a really powerful man such as Bachchan to have changed the twist of Indian films for a certain period in history. Works Cited â€Å"Amitabh Bachchan Biography. † N. d. A punk choice. com. 28 April 2008. â€Å"Amitabh Bachchan. † N. d. Bollywoodblog. com. 28 April 2008 â€Å"Amitabh Bachchan. † N. d. Indiazen. com. 28 April 2008 â€Å"Amitabh Bachchan. † N. d. Hindilyrix. com. 28 April 2008. â€Å"Amitabh Bachchan: The Comeback Man. † N. d. BBC news. 28 April 2008 â€Å"Amitabh Bachchan. † N. d. Indiaoye. 28 April 2008 Chopra, Anupama. â€Å"Bollywood: India’s Star Machine†. n. d. Microsoft Encarta Online Encyclopedia side bar. 28 April 2008

The Body Shop and the Cosmetics Industry Dissertation

The Body Shop and the Cosmetics Industry - Dissertation Example The Body shop is the second largest cosmetic franchise in the world and founded by the late Dame Anita Roddick. Headquartered in Little Hampton, THE Body Shop is known for its vegetable-based products ranging from Body Butter, Peppermint Foot Lotion, and Hemp (Corporate Report 2009). The Body Shop has emphasized its support for a wide range of issues around the globe. The company is noted for a range of product environmental innovation. For example, rather than using new bottling bottles from the shop, they press on using their own bottles. (Report 2007). 1.1 Problem Statements and Research Questions Although the concept of CSR has gained prominence during the last couple of decades, little research has addressed the concept within The Body Shop. This paper seeks to open another research area by focusing on The Body Shop and cosmetic industry. Thus, this paper addresses three important questions. 1. Why is CSR an increasingly relevant factor within the cosmetics industry 2. How is CSR implemented by The Body Shop to gain competitive advantage in the cosmetics industry However, this is limited to the body shop as focusing on the body shop has a number of advantages. For example it pioneered CSR behaviours in the cosmetic industry. 3. How has The Body Shop's practice of CSR demonstrated a correlation with customer purchasing behaviour Has this been affected by the recent takeover of The Body Shop by L'Oreal 1.2 Objectives and Purpose of Study This research focuses on the cosmetic industry. The purpose of the paper is to address and examine CSR activities in the cosmetic industry focusing on the body shop. The main purpose is to examine why CSR is an increasingly relevant factor within the cosmetic industry. Another objective is to... These issues pose significant challenges for companies as far as their competitive position and long-term performance is concerned. Consequently, it is necessary for companies to design CSR policies that would enable customers and other major stakeholders to perceive them as genuine companies. Such an approach will go a long way to improving the competitive position and long-term performance of the company. Companies must also increase the information that they disclose in their corporate social responsibility reports as this increases the company’s chances of being perceived as a transparent company and thus its chances of performing well in the community. This dissertation through theories and literature explores the concept of CSR and thereby takes a case study approach and analyses the application of CSR in the cosmetics industry and more specifically in ‘The Body Shop’. The Body Shop has made a name for itself in the cosmetics industry by trading the path of honesty and integrity in terms of its CSR policies. In conclusion, despite its noble approach towards CSR and better future environment over the years, it has many rooms for improvement.Here, it is important to note here that, CSR activities have become the values of the body shop, through its belief and emphasis on natural ingredients and environmental activities, the body shop has distinguished itself from other beauty shops in the cosmetic industry. Its emphasis on socially responsible and corporate citizenship has created a competitive edge in the market.

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Marketing analysis Case Study Example | Topics and Well Written Essays - 750 words

Marketing analysis - Case Study Example The strength of the company is the exclusivity it provides through its garments. There is a prestige tag attached to the apparels it makes and that become the ‘want’ quotient for the customer. The high pricing is justified because of this prestige factor. The strength of the company also lies in the styles they have created, excellent service to the customer, wide range of sizes, colours and patterns available all come with the prestige factor. The weakness for True religion jeans comes from the marketing strategy implemented. For an average consumer the pricing is too high and the premium market cannot be predictably loyal. Additionally with launching of various apparel ranges like, swimwear, footwear etc. there could be a diversion from its core brand. According to International forum for cotton promotion the jeans market worldwide is grew from US$52 billion in 2007 to US $56 billion by 2014. North Americans have proved to be number one consumers of jeans having maximu m pairs of jeans in their wardrobes. Astonishingly the share of premium jeans is also significant. Even if it may look as mere 2 % of the total market the figures range very high as the basic market is of higher demand. Hence opportunity in the external environment is significant for the company. The threat to the company comes from the increasing share of other manufacturer’s in premium denim wear. ... Considering the analysis above it is a very wise strategy implemented by the company to market the jeans as a premium segment. The premium market share is growing at a significant rate. The organization is mainly counting on the attitude of the customers which says that as long as the garment delivers style and fit, the price for the same holds less importance. Promoting it through television and movie stars is another clever strategy as it instantly adds to the appeal of the jeans. The strategy also specifies that it is worth to pay a few extra as good quality comes with good pricing. Here the product promotion strategy is based on premium value for the money paid. The brand promotion is based on celebrity endorsements. The marketing strategy is based on the study of consumer of jeans and very well supported by services offered. Retail experience for a customer is memorable with good service offered across the counter. To add to it the customer is not sent away by non-availability o f the merchandise. So a customer when walks in is sure to get a memorable experience through wide range of merchandise, helping attitude of the staff and a great style and fit offered in variety of colours and patterns. This builds a strong foundation of customer relationship and makes the customer come back for more. Although the customer would want to come back for more satisfactory shopping experience, the market segment for the organization needs to expand. The current segment takes care of market which is fashion conscious and would not mind spending money to make a style statement. However as stated earlier this segment is also not very brand loyal and is more likely to switch at the first alternative available. In such case

Metaphysics and Mysticism Term Paper Example | Topics and Well Written Essays - 2000 words

Metaphysics and Mysticism - Term Paper Example Various sections would analyze both the positions and stances. All relevant detailed philosophies and theories would also be considered. The main stance of the paper is a defense of the mysticism argument, not a critic of it. Analysis of the Controversial Views regarding Correlation between Metaphysics and Mysticism Every man and woman that has the desire to understand and know beyond the accepted limitations of physical reality is attracted to the unknown, and by this attraction, be pushed to learn what many do not and wish not. Everything that exists, whether inanimate or not, is connected with an energy binding all things together; to understand this, is to understand the basic principles of Metaphysics. Metaphysics encircles everything that we can perceive through our five senses. Metaphysical belief pushes beyond what is taught in the church or in the Bible, even. It allows one to go outside and sit with the rest of everything that has been created without the hands of man, that is still pure, and be able to feel what it's like to be the grass and the soil. Metaphysics is a way of life to many, and it is taught without teachers. These pages will contain a very brief introduction and explanation of metaphysics and several of its branches of ideas and philosophies. Some scholars believe that Aristotle's "Metaphysics" is only the follow-up or sequel to his extremely well renowned "Physics"; Meaning that Aristotle did not pioneer the spirituality that is now an important part in today's Metaphysics. "All men by nature, desire to know. An indication of this is the delight in our senses; for even apart from their usefulness, they are loved for themselves; and above all others, the sense of sight (Aristotle, 1977)." The first line of Aristotle's "Metaphysics" immediately shows his recognition that the typical five senses perceived by every capable human, are used only in the idea that they are the only way to perceive. Aristotle also states that "All men desire t o know." (Aristotle, 1977), allowing the argument that his thoughts were going toward that of which we cannot know from the five senses that we are born aware of. The argument as to Aristotle's beliefs in the subject can go either way because of an extremely important factor. So one may interpret Aristotle's work as one wishes, it was still his ideas that laid down the essential framework to get the Metaphysical idea moving. Discussion In order for anybody to be able to understand the following ideas and theories, one should take time to put themselves in an open-minded and relaxed state. Once you have entered this state, you will be able to comprehend and understand to the fullest of your capabilities. Relaxation is the ultimate medium for learning, and by being in control of your stress, you can be relaxed whenever you feel the need to, allowing quicker learning and easier understanding. Now things are going to get a little complicated and may begin to get confusing. First of all, there are three divisions of the mind; the conscious, subconscious, and superconscious. (Furse, 1977) These three divisions of the mind control the way we perceive and interact with others, ourselves, and our environment in general. We use these states of consciousness, sometimes entirely unaware of it, for different purposes

The role of Japanese women in Japan during WWII Research Paper

The role of Japanese women in Japan during WWII - Research Paper Example The war started in 1939 and ended in 1945. The reason behind the massive destruction was that the participating nations committed all their industrial, economic and scientific capabilities so as to win the war (Global History network). Among the participants of the war was Japan. The country joined the war in 1937 after the Japanese army invaded China and captured its capital city; Beijing. This move was opposed by other nations including the Soviet Union which signed the non-aggressive pact with China pledging material support. This terminated the China’s prior cooperation with Germany. In 1939, the Japanese forces flooded the yellow river thus stalling the Chinese-Japanese invasion and consequently giving China time to mount a formidable defense. Later, the Japanese decided to invade the Soviet Union where their army experienced their first serious defeat. At this time, Japanese army developed cracks with some factions opposing the move to continue invading China allies. They thus proposed that they should abandon Soviet interests and focus efforts towards Europe and the Americas. This was a grave military and tactical mistake based on what transpired. Unites States responded to Japanese invasion of Pearl Harbor by dropping atomic bombs on two Japanese towns; Nagasaki and Hiroshima. Millions died, property worth millions of dollars destroyed, and to date, scores of Japanese people suffer ailments like cancer that are directly or indirectly related to the two bombings (Kazuko). Majority of the participants in the war were the energetic men who could withstand tough conditions. This meant that women and children were left at home in most of the participating nations. Japan was not an exception where thousands of Japanese men went to the battle field. However, the women who were left behind also played significant roles in the war. Many women were left to look after their families and thus engaged in many

Choose a crisis and discuss how the Chinese government handled it Essay

Choose a crisis and discuss how the Chinese government handled it - Essay Example Food became a problem to feed the growing population. This was followed by intervention of the government through acceptance of importation of world food crops such as maize and potatoes to eradicate the problem. The government decided to come up with certain strategies to counter the high growth rate situation in the country. This was evident through family planning strategy. This policy was established in 1980 and stated that each family should give rise to one child. This was applicable in reducing the large growth rate. In return, there was a balance in the population compared to the previous years. Though some people were against the policy, it has reduced the cost of living of the people of China. The latest statistics shows that this policy has cut down the growth rate which was standing at 1.34 billion by 0.57 percent, which was below the replacement rate (Greenhalgh & Winckler, p, 287). In conclusion, it is evident that the Chinese government has adopted the right policy and strategy of controlling the high population. That is why there is perfect regulation of birth and population in

Suicide and Friend Essay Example for Free

Suicide and Friend Essay Teen suicide is something we all know about; some of us more than others. It is a horrible murderer that takes away our friends, brothers, sisters, cousins†¦and what does it leave behind? The sad memory and wonder of if we could have helped is all that lingers when it takes away the ones close to us. Only two months ago, there was a girl that is known to most teenagers in Georgia. She was outgoing, friendly, helpful, sweet, hilarious, and seemed to light up a room. I never had the pleasure of actually becoming close to her. This girl and I maybe talked twice and she reminded me of myself. She was a bubbly girl, but behind the mask of happiness and a bouncy girl. was the face of a sad girl wanting help. Maybe that’s why I could relate to her. I, too, was like that when we’d talked. Just as I was reaching my breaking point, the girl reached hers. Rachel was her name. She’d attempted to take her life and, two weeks later, died on October 29th, 2009. Like all teen suicides, it affected everyone. Her parents were destroyed, her ex-boyfriend felt guilty to the point of which he wanted to die, her friends missed her and took their anger out on all the wrong people, and it resulted it horrible events. The reason I chose this topic of teen suicide isn’t because it is the 3rd leading cause of death for teens or because of mere stories of it. I chose this because not only do I know the facts, I’ve personally experienced situations where I almost lost a friend and I did lose a girl that could have been like a sister to me. When teens want to die, almost nothing will stop them . It may seem selfish to say, â€Å"Live for me† when they had to live through pain, but what they don’t understand is the pain will pass. There’s an organization especially made for teaching the teenagers that there’s something to live for. It is called, To Write Love On Her Arms. The name has it’s own story behind it, as does the reasoning for the organization being founded, and it’s helped many teens escape the choking grip of suicide. A hotline I had used was an easy one to remember. It was 1-800-SUICIDE. The hotline gave me two operators and they personally helped me. My friend was considering suicide and this hotline helped him. Before you down the idea, let me tell you about it. The friend was given the help he needed and talked down without being taken to the mental institute. Just because someone is suicidal, it doesn’t mean they’re crazy. Think of this: 27% of teens at one high school admitted to secretly wanting to commit suicide and 8% of them did it. That’s proof that suicidal teens are not crazy teens. Why else would a teen commit suicide every 100 minutes? Does that mean that the world is full of lunatics? No. It means that the world is full of teenagers with problems and no answers to them As some of you take teen suicide as a joke, others take it as a personal stab to the heart. We’ve lost friends and family to this horrid killer, but there is only one way to stop it. We have to be understanding, yet helpful . Your friend may get mad if you try to help, but would you rather have the friend dislike you for a little while and be alive or have them love you and dead? As for those that are suicidal, don’t think that the world will be better without you because it won’t. In this world, you are one of a kind. Each and every one of us is unique. If you’re gone, people WILL miss you. It may seem to be the end to your problems, but it’s the beginning to others’ pain.

Function Argument Essay Example for Free

Function Argument Essay Aristotle first asserts that happiness is an ultimate good that is both complete and self-sufficient. 2) The ultimate good for a thing is its ability to complete its function. (3) Human being’s must have a function beyond an occupation in society such as a potter or painter because the ultimate human good must be all encompassing. So the function of a human being cannot specifically be being good at any one position or task. The human function cannot involve just growth because that is essentially the function of plants, and a humans function must be unique in itself. 5) Aristotle claims that because animals and plants cannot reason, a human being’s function must have something to do with rationality, the part that involves our soul. (6) Lesser goods like wealth all are meant to lead to happiness, this rises from the first premise that the ultimate good must be self-sufficient. (C) Therefore he concluded that the human function is the completion of a task (the activity) that involves the soul (not the body), and leads to doing what is ultimately the most virtuous or excellent thing to do. The human function is the activity of the soul in accordance with excellence or virtue. I disagree with Aristotle’s conclusion because I believe premise 4 and 5 are false. He asserts that a human being and a plant cannot have the same functions. Here I think there is a flaw in his logic, Aristotle makes an unreasonable jump in what a person should do and what a person has to do. Humans may have simply evolved from a cell like any other animal, which would suggest that completing our base physical goals, surviving and reproducing, is the human function. Yes because we have evolved further and our capacity for reason is greater then say chimps or dogs, we have a deeper understanding of morality and virtues. Yet there is still a distinct difference between what we should do and what we have to do. I also disagree with the 5th premise because I do not believe reason is a virtue only found in human beings. Animals like gorilla’s and elephants have all been shown to show compassion towards other beings, even those not within its species. Aristotle’s conclusion suffers from these false premises. He makes the assumption that doing something good is the same as being good and this is not true. What something has to do, its function, does not necessarily equate to what something should do. Aristotle draws on the premise that animals cannot reason. While I believe there is a valid argument in terms of the distinction on a human’s depth of reason and an animal’s understanding of it. I believe the distinction lies in a more complex understanding rather then a complete lack of reason. I disagree with these two premises.

Non Cooperative Target Recognition Information Technology Essay

Non Cooperative Target Recognition Information Technology Essay One of the most important aspects of any combat situation is target identification or recognition. In aerial combat, the problem is compounded because of large ranges and similar looking fighter aircraft. Unless a threat is ascertained, counter offensive action cannot be initiated. The problem of target identification in the present air combat scenario has been further complicated due to the large range of the new generation Beyond Visual Range (BVR) missiles  [1]  . While in the yesteryears, procedural control and systems like Identify Friend or Foe (IFF) were in place, they did not guarantee positive identification, since they were not stand alone in nature  [2]  . Therefore there was need to develop a stand alone system capable of identifying airborne threats. 2. Thereafter Non Cooperative Target Recognition (NCTR) techniques were developed, which did not depend on any direct participation from the target for identification purposes. With the emergence of this technology, a big hope was created that this technique would be resolve all the identification issues. The NCTR technology started gaining momentum in the mid eighties and is yet to prove its capability, almost 25 years on  [3]  . Despite technological advances in computers, NCTR is yet to see the light of the day. Though many modern day Airborne Interception (AI) radars feature NCTR, it is still not being used as the primary means of target identification. NCTR at present is being used in conjunction with IFF and other procedural methods primarily due to its reduced reliability. 3. Incorporation of NCTR technology in the older AI radars may involve change of the radar itself. Considering this and the fact that NCTR technology has not fully matured, is NCTR really the most economically viable solution for airborne target identification at present? Or is there a better system available for this purpose? Methodology 4. Statement of Problem. Modern day air combat environment is dense with both friendly as well as hostile aircraft. Identification is a serious problem and this has been further compounded by significantly large ranges of new generation air to air missiles. Erstwhile methods of target identification like IFF have failed in many situations, leading to fratricides. Would employment Non Cooperative Target Recognition techniques alone resolve this issue? 5. Hypothesis. NCTR as a technology is very demanding on the computer hardware as well as software. So at present NCTR may not be the best solution for problems related to aircraft identification in a dense air combat environment. It is possible to get inputs from all available sensors like AI radars, AWACS, aerostats etc and integrate them to form an intelligent composite picture and identify friends from foes. However NCTR as a concept is still very lucrative. 6. Justification of Study. The requirement and importance of target identification is fairly obvious and history will bear testimony to the fact that most of the fratricides have been due to incorrect identification. Earlier systems have failed primarily because the onus of identification was with the target. Inability to prove himself for whatever reason, resulted in a friendly target being declared hostile. While NCTR as a concept seemed to be a good solution, the technological implementation of the concept has still not emerged fail proof. Also, integration of various other existing sensors in a networked environment to form an intelligent composite picture seems to be a more viable solution. 7. Scope. The scope of this paper is to examine as to whether NCTR is really the path ahead, as far as target identification goes. The paper will look into the complexities associated with database required for airborne target identification (3 dimensional space, multiple aircraft configurations etc.) and also the technical limitations associated with implementation of NCTR. The paper would also examine the feasibility of implementing other techniques of identification. The scope would be limited to logical analysis based on available information on the subject and would not involve any scientific experiment or mathematical computations. 8. Methods of data collection. NCTR as a subject has gained momentum only in the past few years and hence has very few publications giving basic insight. Most of the data has been collected on the internet including soft copies of the books and validated thesis by others. The sources are mentioned in the bibliography at the end of the paper. 9. Organisation of the Dissertation. It is proposed to study the subject in the following manner:- (a) Chapter I Introduction and Methodology. In this chapter the subject is introduced. This chapter also defines the statement of problem, the justification for the research and the methodology involved. (b) Chapter II Need for Airborne Target Identification systems. This chapter brings out the requirement and complexities involved in airborne target identification. (c) Chapter III History of NCTR. This chapter gives a brief insight into the history of NCTR (d) Chapter IV How exactly NCTR Works. To appreciate the complexity involved in the airborne identification process, it is important to understand how exactly NCTR functions. This chapter brings out the complexities involved in the working of NCTR. (e) Chapter V Various Types of NCTR Techniques. This chapter brings out the types of NCTR techniques available for use. Though the chapter is technical in nature, it is important to assimilate the various techniques in order to understand the complexity and short comings of the system. (f) Chapter VI Database Generation. The efficiency of entire process involved in NCTR depends on an accurate and exhaustive database. This chapter brings out the methods available and the limitations in generating adequate database. Again this chapter like the previous chapter is slightly technical in nature despite best efforts of keeping it as simple as possible. (g) Chapter VII Technical Limitations of the System. While so far the paper dealt with the software aspects, this chapter would bring out the technical limitations of the hardware required by the radar for functioning of NCTR. (h) Chapter VIII Alternatives to NCTR. This chapter looks at the alternatives to NCTR for target identification. (j) Chapter IX Conclusion. This chapter concludes the topic. CHAPTER II NEED FOR AIRBORNE TARGET IDENTIFICATION SYSTEMS If you know the enemy and know yourself, you need not fear the results of a hundred battles. SUN TZU Introduction 1. In any hostile situation it is important to identify the adversary. Without knowing who the enemy is, how can one fight? Same is true for aerial combat, only with added degree of difficulty. While in the earlier years, aircraft identification was mostly restricted to visual identification, with improvement in technology this was no longer possible. The increasing weapon ranges post World War II made it difficult to visually identify aircraft in air during combat. 2. And also, any given airspace may contain friendly, neutral as well as hostile aircraft. How can one fire at an aircraft without ascertaining its nature / intent. Therefore aircraft identification forms a vital part prior to weapon launch. Tragic Incidents. 3. History is full of tragic incident of misidentification in air. There are numerous examples of neutrals having been shot from the sky. There also many cases of fratricides even in the recent conflicts. Some of them have been enumerated below  [4]  :- (a) On 5 October 2001, a Russian Sibir Tu-154 Airliner flying from Israel to Russia was thought to have been shot down by a missile fired by Ukrainian troops in a military exercise. (b) In April 1994, 02 USAF F-15 aircraft under positive control, accidently shot down their own Army Black Hawk Helicopters in Northern Iraq  [5]  . Visual Identification of Aircraft 4. World War Era. In both the first and second world war, aircraft recognition did not pose any major problem. In this era, the kill solution was attained by use of guns and hence the weapon ranges were much closer as compared to the distances at which the targets were discernable. The aircraft were slow moving and it was possible to spot and identify the type of aircraft before commencing offensive action. The combat was largely within the so called Visual Bubble of the pilot/s. As can be seen from Fig 2.1, the aircraft can be visually recognized by identifying the distinct shape, colour and characteristic visual features of the aircraft. Due training was imparted for this. In fact, in United Kingdom, The Royal Observer Corps (ROC) was formed, which had civilian personnel specially trained for identifying aircraft  [6]  . Fig 2.1 : Aircraft of World War Ihttp://www.military-aircraft.org.uk/ww1-fighter-planes/nieuport-17.jpgRoyal Aircraft Factory SE5A World War One Aircraft 5. Post World War II. However post World War II, there was a rapid improvement in the fighters and weapon technology. With the advent of close combat air to air missiles and increase in weapon ranges, the hostile aircraft had to be identified by at least 2-3 km to initiate evasive action. Also the newer jets were similar looking in terms of shape and size. In the Fig 2.2, photos of F-15 and MiG-29 aircraft are placed side by side for comparison. While F-15 is an American fighter, MiG-29 is from erstwhile Russia. One can easily appreciate the similarity of features which may result in one being mistaken for the other. If this is the case at close ranges (20 30m), it would be reasonable to assume that visual identification would be almost impossible at ranges of 2 km and beyond. Fig 2.2 : Visual Comparison of F-15 and MiG-29 Fightershttp://www.atfx.org/photos/f15a.jpghttp://www.aerospaceweb.org/aircraft/fighter/mig29/mig29_12.jpg 6. Post World War II, there also has been a significant increase in the speed of fighters engaged in aerial combat. This fact together with earlier mentioned aspects makes visual identification a passà ©. The use of radars did give some respite to the aerial fighters. However the weapon solution was still based on visual identification. With the advent of BVRs, the need for alternate means of identification gained importance. Without this, the full capability of BVR cannot be exploited  [7]  . 7. To tackle this problem of target identification, some techniques like the IFF (Identify Friend or Foe) have been developed so far. IFF systems are based on challenge response system. The system consists of a transponder fitted on the aircraft which replies in the form of suitable codes to any other IFF system. If the codes match, the aircraft is declared friendly. However should the code be incorrect or in case of no response, the aircraft is declared hostile. It should be kept in mind that response would not be possible in case of battle damage, loss of encryption keys, wrong encryption keys, or equipment failure. Therefore the major drawback of this system was that it was imperative on the part of the friendly aircraft to prove that he is friendly. In the event of faulty transponder, there are chances of fratricide. 8. Therefore there is a need to have a stand alone system capable of identifying and recognizing aircraft to take timely responsive action and also to prevent fratricide / shooting down of neutrals. CHAPTER III HISTORY OF NCTR Know thy self, know thy enemy. A thousand battles, a thousand victories. SUN TZU 1. Need for a Stand Alone System. As can be seen from the last chapter, the IFF systems had a major drawback, that of requiring participation from the other aircraft. Inability to participate in the challenge response loop by other aircraft due to whatever reason was construed as Hostile by the system. This has resulted in many fratricides in the past. A number of such fratricides due to faulty IFF resulted in the need for a stand alone system. Some more cases of disasters due to faulty IFF are enumerated below:- (a) 1980. An Italian DC-9 passenger plane was shot down with a missile near Sicily. The missile was aimed by mistake because of incorrect IFF and discrimination of the type of plane. 81 passengers died.  [8]   (b) 1988. In the Persian Gulf, an Iranian Airbus was shot down by an SM-2 standard missile. The aircraft was erroneously recognized as an F-14 fighter aircraft. 298 people died.  [9]   (c) 2003. A glaring example of fratricide due to faulty IFF is that of two Royal Air Force Tornados returning after a mission in Iraq , which were shot down by US Patriot missiles on 22 Mar 03, in which both the crew were killed instantly. The investigating board attributed one of the causes as faulty IFF probably broken down due to power failure  [10]  . 2. These kind of mishaps led to the requirement of having a system which could identify aircraft without the active involvement of the unidentified aircraft. The concept of NCTR dates back from the mid seventies. A program started by the USAF code named Musketeer, introduced the idea of NCTR for the first time. In this program, the aircraft radar was used to count the fan blades in the engine  [11]  . This technology was later named as Jet Engine Modulation which would explained in detail in the subsequent chapter. The radar signature was unique to each engine. Since most aircraft had different engines, this technique was exploited for identifying the type of aircraft. 3. Though the concept was introduced in the mid seventies, the computational technology then was not adequate. The radar per se only gathers data and the extraction of useful information has to be done by the radar computers. Hence NCTR technology had to wait till mid eighties for the computer technology to catch up.  [12]  Thereafter the USAF had incorporated NCTR modes in the An/APG 63 radar of F-15 C aircraft. During the Gulf war in 1990- 91, use of this technique was made in conjunction with Airborne Warning And Control System (AWACS) for identifying hostile aircraft  [13]  . 4. Post Gulf war some progress was made in Automatic Target Recognition (ATR) systems. These systems did not restrict themselves to aircraft radars and were mostly ground based systems using millimetric wave radars  [14]  . The ranges of these radars were significantly lesser than airborne interception radars. While these radars were completely different in terms of technology and operating ranges, the basic concepts were similar. However the computations involved in aerial target recognition was much higher than ground targets. Though many experiments were conducted on ATR systems, the progress in NCTR was not at the same pace. 5. Post 1985, NCTR was tried and fitted on the USAF F-14, F-16 and F-18 aircraft. In addition, NCTR was also fitted on selected foreign F-15s (Israeli), British Tornados and French Mirage 2000-5s  [15]  . Today, in 2010, the technology has still not fully matured and still cannot be used in isolation for aerial target identification. CHAPTER IV PRINCIPLE OF OPERATION AND COMPONENTS OF NCTR Principle of Operation 1. Now before proceeding further, it would be prudent to understand how NCTR principles work. NCTR fundamentally relies on the returns from the target aircraft. Hence no active participation (as in IFF) is required from the target aircraft. Non Cooperative Target Recognition like any other identification process would in simple terms consist of first sensing the target. Then the relevant features of the target are extricated and compared with a database. Thus any NCTR system should essentially contain a Sensor, a Feature Extractor and a Classifier. 2. The principle of operation of NCTR is very similar to Optical Character Recognition (OCR) as in computers. The data from the target is collected by a suitable sensor and relevant data extracted. This is compared to the data existing in the library and then classified based on the results of the comparison. And for the success of this technique, a huge library of various aircraft profiles is required as database for comparison. The steps involved in identifying the target aircraft has been depicted in Fig 4.1. The flow chart of target recognition shows that the Recognition Algorithm takes two inputs namely measured target signature and signatures stored in the library and gives target identity as the output. Recognition Algorithms have been briefly explained subsequently. Fig 4.1 : Flowchart of Target Recognition SENSOR 3. Choice of Sensor. Choice of sensor is a very important part of this identification process. Without proper or adequate returns from the target, it would be nearly impossible to accurately classify the aircraft. For NCTR per se, a number of sensors are available Optical, Infra red, laser, acoustic and radar. However the optical, IR and laser sensors are prone to adverse weather conditions like moisture, dust etc. Also the detection ranges of these sensors are significantly lesser as compared to air to air weapon ranges especially in a BVR environment. Radar as a sensor has significant advantages as compared to the other sensors for the following reasons  [16]  :- (a) Aircraft are generally constructed by radar reflective material (even those with carbon composite have metal parts that reflect radar). (b) Radar can be used by day or night and is not affected by haze, fog, snow and rain. (c) Radar ranges are much higher than other sensors due to reduced atmospheric propagation attenuation.. (d) Radar has been one of the most extensively used sensors for aerial surveillance and the technology to generate, receive and process radar signals has been continuously refined for nearly 100 years. Hence radar is the optimum choice of sensor for NCTR on fighter aircraft. Moreover radars are already in place in all the modern generation fighters. Hence there would be no requirement to add a separate sub system on the aircraft. 4. Sensor Requirements. The radar capability required for the NCTR is specific. It is misnomer that any radar can be made NCTR capable. Suitable radar software is not the only thing that required for NCTR process. It is important that the radar design is appropriate to the type of measurement that has to be performed and to provide the type of target signature required. In order to obtain signatures of high integrity, the waveform must be carefully designed and the radar must support the transmission and reception of the signal without distortion  [17]  . The radar must be designed to minimize the effects of multiple reflections and clutter. The radar must also possess sufficient energy so that the returns from the target contain adequate data, required for the recognition process. Therefore it may not be possible to upgrade the existing radars with NCTR capability. Should it be possible, it may entail change of major components, which may not be the most economical solution for preventing fratricides. FEATURE EXTRACTOR 5. Function. The returns from the radar are simply electromagnetic pulses. It is of no use unless, relevant data is extracted from them. This is done by the Feature Extractor. Feature extraction is a process which happens inside the radar computer by means of suitable algorithms. These algorithms look for a specific attribute and isolate them for comparison. The algorithm for feature extraction would depend on the type of NCTR technique being employed for target recognition. Types of NCTR techniques are explained in detail in the next chapter. 6. Constraints. Feature extraction is a highly complex problem due to highly dynamic nature of fighter aircraft  [18]  . The radar returns from the aircraft are highly aspect dependent. More the aspect, more and stronger the radar returns, hence better feature extraction Aspect angle in simple terms is a measure of how much of the target aircraft is visible. When viewed from front / rear minimum area is visible and this is Zero aspect. When viewed from broad side, maximum area of the aircraft is visible. Now the aspect angles in 3D space are both in terms of elevation as well as azimuth. Due to highly aspect dependent nature of the scattered signature, the process of feature extraction becomes even more difficult. Also due to movement of the target, the radar signatures get distorted and this poses problems not only in feature extraction but also classification. These aspects are discussed in detail in Chapter 5. 7. After the radar has transmitted the pulses, detected and processed the return from the target of interest, the target signature is now ready for the recognition process. In order to perform correct target recognition, a lot of information needs to be known about the target. These information are contained in the form of a library in the radar computer. The details of database and database generation are discussed in detail in Chapter 6. CLASSIFIER 8. Classifier. The classifier in an NCTR system compares the extracted features of the target signature with the already existing library of aircraft signatures. The comparison is made with the help of recognition algorithms  [19]  . Recognition algorithms are mathematical techniques or formulae that compare the signatures which have been measured with the mathematical models of aircraft existing in the radar library. The algorithms are designed to analyse and assess how close a match a particular signature is to reference signature contained in the library. With the help of these algorithms, the classifier now assigns the most appropriate and closest identity to the target. Shown in the fig 4.2 is a target signature being compared with the three reference signatures. On close analysis though the target signature does not perfectly match any of the reference signatures, it is closest to Target C. Therefore the classifier would it assign the measured signature as Target C. Fig 4.2 : Target Signature Comparison with Reference Signatures 9. Target signatures have to be measured, modelled and analysed, to enable the attributes used for recognition to be identified. The techniques for reliably extracting these attributes from the target have to be determined. Libraries of target data have to be assembled, ordered, managed and updated as new targets emerge and more target signature data becomes available. The development of reliable recognition algorithms is clearly critical for developing a high-performance target recognition capability. 10. While a computer can easily identify various objects based on the size, shape, colour etcetera, it would still lack the ability to identify objects logically as the human brain does. Till the neural and genetic algorithms are not fully developed, it would be difficult to optimize NCTR for aerial identification.

Service Learning Should NOT be Mandatory For College Students Essay

Service learning is the name for forcing college students to do volunteer work as part of their college careers. The hope is that this volunteer work will give students a better sense of civic duty, and thus, be a worthy addition to college curriculums. However, this idea relies on the faulty premise that if one is forced to volunteer that one will derive the same benefits as someone who does it out of their own desire to help. Mandatory service learning will not have the desired effect, and should not be forced upon students. It is perhaps intuitive to think that by making students help others there will be a net positive; there could be no downside to volunteering time and effort to help the community. However, a more detailed inspection reveals there are many negatives, and any positive effects are just wishful thinking. To begin with, service learning wouldn’t benefit the students’ education. Indeed, many students would be unable to volunteer in their field. This negates any argument that service learning would help the students’ education. While there may be specific cases where a student with a practical major could benefit from volunteering their efforts, this would simply be a positive indirect effect. Not only that, but in many cases such students are already effectively volunteering their time in the form of unpaid internships. If schools wish students to volunteer in such a manner they should be working with charities to establish more voluntary internships. However, as soon as students are forced to volunteer for the sake of volunteering, it no is longer about helping the student. One has to ask: why it is exclusively schools that would take up this forced volunteer work? If it was really a needed benefit to s... ...he community. The only justification for having the students do the work themselves is a sense of civic duty. Unfortunately, by forcing the students to do the work, any positive sense of civic duty will be offset by negative emotions from being forced. A better way to gain the desired sense of civic duty is through additional education that addresses the problems and their causes. In the end, the idea of mandatory service learning doesn’t make sense. Works Cited: Bringle, Robet G. and Julie A. Hatcher. â€Å"Implementing Service Learning in Higher Educations† (Excerpt). Journal of Higher Education 67.2 (1996): 221-223. Print. Caret, Robert L. â€Å"Local Students Serve as They Learn.† Examiner.com. The Examiner. 20 September 2007. Web. 9 Sept. 2008. Egger, John B. â€Å"service 'Learning' Reduced Learning.† Examiner.com. The Examiner, 2 October 2007. Web. 9 Sept. 2008.

Progressivism In the Classroom :: Education Teaching Teachers Essays

Progressivism In the Classroom A good education has always been drilled into my head ever since I was a little girl. Boy did I hate that, all I wanted to do was goof off and have fun with my friends. But as the years went on I started to realize how important it was to have a good education. Not that that made me like school anymore than I did; but I was realizing the different ways I was learning and how different people taught. I remember saying one day, when I was a freshman in high school, that if I was teaching this class I would have never taught it that way. Unfortunately, my teacher overheard me and I was forced to go to the front of the room and explain to the class the way it should be taught since I knew so much about teaching. Needless to say I did an awful job of it. That is when I started thinking about becoming a teacher. I know that does not make sense because I did such an awful job and was humiliated doing it. I did not like the way that man taught and I was determined to take his job. However, the reason I am here today is not that I want to take a teacher’s job; it is because I have the desire to make a difference in the lives of many students. I hope I will be a good teacher so that I will never have to hear a student say something bad about my teaching. I think that the nature of knowledge is relative. Not all children can learn in the same environment. I believe that if a child is put in an environment in which they cannot learn they should be placed in another environment so that they can. Some students learn at a slow pace and others learn at a fast pace. Then there are the students that learn better by lectures and others that learn better by activities. If you mix these children in the same class, than there are usually some lost kids in the class? I know that in my experiences with school, I would have never made it in a normal classroom since I learned so much slower than the other kids did.

Does Delegated Legislation Represent a Threat to the Democratic Process

Delegated legislation is the power delegated by Parliament to some person or body to make law. The Act of Parliament that enacts a valid piece of delegated legislation, and the latter itself, both have the same legal force and effect. Parliament retains general control over the procedure for enacting such law. There are various types of delegated legislation. Orders in Council, Statutory Instruments, Bye-laws, Court Rule Committees, Professional regulations. It is essential to focus on the facts that specific controls have been established to oversee an unjust or inapplicable delegated legislation. Apart from the parliamentary control of the Join Select Committee on Statutory Instruments, Courts can also challenge ultra vires provisions through judicial review. Due to the complex nature of the delegated legislation, there are contradicting opinions about its democratic –or not- characteristics. Some people argue that as long as there is some control over delegated legislation not only by Parliament by more importantly by judiciary, this kind of legislation doesn’t seem to threaten the democratic process. In fact, given the pressure and waste of time on debating, it is more beneficial for the government to spend its precious time in a thorough consideration of the principles of the enabling Act, leaving the appropriate minister or body to establish the working details. The time saving and the fact that particular problems are faced swiftly from the minister or body overview ...

Characters in Hamlet and Young Hamlet

The theme of revenge is a primary source of discord among the characters in Hamlet. Vengeance affects each person who is exacting it and those present around them. In particular, Hamlet, Laertes, and Claudius’s retribution leads to their demise. William Shakespeare's Hamlet can be defined as a revenge tragedy. In Shakespeare's Hamlet, the reader sees a noble, heroic central character that is destroyed because a defect in his character either causes him to involve himself in circumstances which overpower him, or make him incapable of dealing with a destructive situation caused by another character or by circumstances. The play ends with the death of the central character. But before he dies, he achieves insights which make him a more perceptive human being than he was when the play began. This central character, Hamlet, shows his love directly and indirectly to the reader. Hamlet is noble in birth and person, a prince of extraordinary intelligence: and, as the action of the play proves, he is heroic. His defect (indecision, excessive imagination, irrationality, madness, etc. ) prevent him from seizing control of the world Claudius has created. His death closes the play, but only after he experiences and expresses illuminations about human life and death. After Hamlet's Father died, it cast an unwanted and heavy cloud upon Hamlet's soul. Throughout the play Hamlet learns that his Father's death was no mistake, but it was Hamlet's Uncle's plan to murder him. This, of course, throws a much larger burden on Hamlet's hands and the thirty year old prince seeks revenge continuously. Hamlet learned from the ghost of his Father about the betrayal Claudius had planned. The ghost of his Father tells him to â€Å"Revenge his foul and most unnatural murder,† Act 1, Scene 3; Line 74]. He also directs Hamlet away from killing his Mother. Revenge causes the characters in Hamlet to act blindly through anger and emotion, rather than through reason. It is based on the principle of an eye for an eye; this action is not always the best means to an end. Fortinbras, Laertes, and Hamlet were all looking to avenge the deaths of their Fathers. They all acted on emotion driven by the want of revenge concerning their Father's deaths, and this led to the downfall of two, and the rise to power of one. Since the head authority figures of the three major families were each murdered, the eldest sons of these families felt that they needed to take some kind of action to avenge their Father's deaths. This need to bring honour to their respective families was ultimately the demise of Laertes and Hamlet. Firstly, Hamlet displays anger toward his Uncle, King Claudius for marrying his Mother, Queen Gertrude, so quickly after the tragic death of his Father, King Hamlet. However, the main source of his anger begins with his feelings of despise for his Mother who chose to marry Claudius so soon after her own husbands’ death. Hamlet constantly allows this incident to brood in him and overrule every other thought and action he takes. Hamlet is convinced that the level of grief he feels for his Father’s death is the standard that everyone around him should be following. Since Gertrude does not express the same intensity of sorrow that Hamlet does, he is left furious at her and those in similar standing. ‘Tis not alone my inky cloak, good mother, Nor customary suits of solemn black, Nor windy suspiration of forced breath, No, nor the fruitful river in the eye, Nor the dejected haviour of the visage†¦Ã¢â‚¬  [Act 1, Scene 2; lines 77-86]. Secondly, King Hamlet’s ghost shares with Hamlet the cause of his death and how his murderer, Claudius, seduced Gertrude even before his death. â€Å" ’Tis given out that, sleeping in mine orchard, A serpent stung me; so the whole ear of Denmark Is by a forged process of my death,† [Act I, Scene 5; lines 35-37]. â€Å"The serpent that did sting thy father’s life Now wears his crown. [Act 1, Scene 5; lines 39-40]. â€Å"O wicked wit and gifts, that have the power So to seduce! – won to his shameful lust The will of my most seeming-virtuous queen;† [Act 1, Scene 5; lines 45-47]. Nevertheless, the ghost warns Hamlet to leave Queen Gertrude alone, to kill Claudius but not harm her. â€Å"Taint not thy mind, nor let thy soul contrive Against thy mother aught; leave her to heaven,† [Act 1, Scene 5; lines 86-87]. In response to the ghost’s news Hamlet does not take action instantly, but instead, records the event in his journal showing a fascinating personality characteristic. Interestingly, there were three major families in the tragedy of Hamlet. These were the family of King Fortinbras, the family of Polonius, and the family of King Hamlet. Fortinbras, King of Norway, was killed by King Hamlet; slain by sword during a man-to-man battle. â€Å"†¦ Lost by his father, with all bonds of law, to our most valiant brother. â€Å"[Act 1, Scene 2; lines 24-25]. This entitled King Hamlet to the land that was possessed by Fortinbras because it was written in a sealed compact. Furthermore, Hamlet is slow to act in regards to killing Claudius but he does act rashly, without thinking. He is presented with numerous opportunities to kill Claudius but does not take those chances, which result in Hamlet being the murderer in the accidental death of Polonius. Polonius was an advisor to the King, and Father to Laertes and Ophelia. He was definitely a prying Father who did not trust his children, and at one point in the play, used his daughter to probe Hamlet. Young Hamlet killed Polonius while he was secretly listening in on a conversation between Hamlet and his Mother. â€Å"How now! A rat? Dead, for a ducat, dead! â€Å"[Act 3, Scene 4; Line 25]. King Hamlet of Denmark killed King Fortinbras, only to be killed by his brother, Claudius. â€Å"†¦ My offence is rank, it smells to high heaven; A brother's murder†¦ † Each of these events affected the sons of the deceased in the same way. Laertes discovered his Father's death, and immediately returned home. He confronted King Claudius and accused him of the murder of his Father. Claudius told Laertes that Hamlet was responsible for his Father's death. Laertes takes action, deciding to scheme and kill Hamlet in order to avenge the death of his Father. In addition, he and Claudius concoct a plot to kill Hamlet. â€Å"I will do’t: And for that purpose I’ll anoint my sword. I bought an unction of a mountebank, So mortal, that but dip a knife in it, Where it draws blood no cataplasm so rare,† [Act 4, Scene 7; Lines 140-144]. Laertes and Claudius follow with a proposal of a duel to Hamlet, which he accepts, even though he senses a foreboding. Hamlet does end up dying of wounds from the poisoned tipped sword Laertes used. â€Å"†¦ Hamlet, thou art slain†¦ the treacherous instrument is in thy, unbated and envenom'd†¦ ‘[Act 5, Scene 2; lines 306-313]. Throughout the play Hamlet proceeds to try and prove his Uncle's guilt, and then finally kills him while he himself is dying of poisoned wounds inflicted by Laertes during their duel. â€Å"The point envenomed too! Then venom, to thy work†¦ Here, thou incestuous, murderous, damned Dane, drink off this potion, is thy union here? Follow my mother. â€Å"[Act 5, Scene 2; lines 314-315, 317-319]. This left the King dead, and his Father's death avenged, with Gertrude dying shortly beforehand of the poisoned wine she drank as Claudius watched her. â€Å"No, no, the drink, the drink! O my dear Hamlet! –The drink, the drink! I am poison’d! [Act 5, Scene 2; lines 301-303]. The lack of thought used in exacting the revenge led to the deaths of Laertes, Hamlet, Claudius and Gertrude. Laertes planned with Claudius to kill Hamlet with the poisoned tipped sword, but they had not thought that the sword might be used against them. With Laertes believing the King's accusations th at Hamlet had murdered his Father, he fights Hamlet and wounds him once with the poisoned tipped sword. Hamlet proceeds to wound Laertes with the same sword, exacting his death. Hamlet had many chances to kill his Uncle, but his rage outweighed his better judgement; and he chose to wait until he assumed God could see no good in Claudius, and then strike him down into a world of eternal damnation. â€Å"Now might I do it pat, now he is praying†¦ A villain kills my father; and for that, I, his sole son, do this same villain send to heaven. â€Å"[Act 3, Scene 3, lines 74-98]. Hamlet waits until he can kill his Uncle while he is performing a sin but unfortunately for Hamlet, his next chance to exact revenge on Claudius is his own death. Revenge, being the driving force in the play Hamlet, is also one reason why it is a tragedy. Hamlet allows his revenge for his own justice to become his everything, consuming him. It is this rage that eventually drives him to madness and murder. Ironically, Claudius, Laertes, and Hamlet all died of the same sword. Revenge was the core strength behind three of the main characters of the play, ensuing in each of their downfalls. â€Å"If thou didst ever hold me in thy heart, Absent thee from felicity a while, And in this harsh world draw thy breath in pain, To tell my story. Act 5, Scene 2; lines 339-342]. The self interest demonstrated by Claudius, Laertes and Hamlet caused destruction in their own lives, which of course affected many lives around them. Driven by retribution, they did not consider the affect their anger would have on themselves or those they loved. â€Å"Of accidental judgments, casual slaughters, Of deaths put on by cunning and forced cause, And, in this upshot, pu rposes mistook Fall’n on the inventors’ heads: all this can I Truly deliver. † [Act 5, Scene 2; lines 375-379].

Value Investing: Predicting Long-Term Pro?tability Based on Fundamental Data

cling to coronation stock certificates caudexs Predicting long-run master? t mogul found on gunstockamental Data An falsifi equal to(p) Study in the Manu incidenturing Industry by Vital Schwander (05-609-136) secures dissertation supervised by masterf. Dr. Andreas Gruner University of St. G on the wholeen May 23, 2011 Master in Law & Economics precis rabbit warren Bu? ett (1992) classi? es the password around honour and growing short earn as befuddled thinking. With that statement, he argues that cherish investors mustiness guess emersion in their look on calculations. This dissertation reverts in a ? rst step that emergence is tho valuable if the conjunction bangs a fixed free-enterprise(a) reinforcement.By examining the central characteristics of companies with a durable private-enterprise(a) consumptionfulness, this dissertation int de bourninations in a second step to esteem the signal expertness of long masterfessionalfessionalfe ssional? tability. The DuPont Identity aids as mannequin for that purpose. The objects of this investigation ar companies indoors the manufacturing fabrication (Primary SIC Code surrounded by 2000-3999) that were listed in the linked States amid 1979 and 2009. The results show that companies with a durable private-enterprise(a) profit let on speci? c characteristics in direct e? ciency, plus use e? ciency, and in the ability to meet short obligations. except to a greater ex disco biscuitt(prenominal)(prenominal) than, the thesis shows that long pro? tability, ground on the investigated characteristics, is prefigureable to close to extent. This thesis concludes by assembling the insights to a n hotshot apprise dodge that is apply to manufacturing companies listed in Switzerland. The break finishedline exhibits an outstanding SMI-adj. flux classly harvest-tide charge per unit of 13. 19% oer a limit of 17. 5 historic boundary. ii cite I would give c be to express my gratitude to Prof. Dr. Andreas Gruner for superintend this thesis and his assistant Lucia Ehn for her c erstwhileptionual advices. I stick out encourage much to convey Mr.Hans Ulrich Jost for self-aggrandising me insight into the daily ancestry of a nurse fund at UBS AG. My sis Daria introduced me to R and Latex. I want to thank her for her help and support. I want to thank my great family who has been al ways supportive and motivating. Fin everyy, I as sanitary would like to thank friends and colleagues for fashioning life oft(prenominal) an enjoyable experience. trinity Contents 1 Introduction 1. 1 1. 2 Issues, Goals and Limitations . . . . . . . . . . . . . . . . . . . . . . . . . entangled body cleave and Empirical shape up . . . . . . . . . . . . . . . . . . . . . . 1 1 2 4 4 5 7 7 8 2 pry InvestingAn investiture Paradigm 2. 2. 2 2. 3 The Origin of cling to Investing . . . . . . . . . . . . . . . . . . . . . . . . . judge and former(a) Investors . . . . . . . . . . . . . . . . . . . . . . . . . . . Four harbor St trampgies by gaucherie . . . . . . . . . . . . . . . . . . . . . 2. 3. 1 2. 3. 2 2. 3. 3 2. 3. 4 2. 4 2. 5 Piotroskis F_S union . . . . . . . . . . . . . . . . . . . . . . . . . . Walter and Edwin Schloss . . . . . . . . . . . . . . . . . . . . . . . Warren Bu? ett . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 UBS electromagnetic unit prize management Fund . . . . . . . . . . . . . . . . . . . . . 12 entertain vs fruitFuzzy idea . . . . . . . . . . . . . . . . . . . . . 13 judge Anomaly . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 2. 5. 1 2. 5. 2 2. 5. 3 Behavioral approach shot . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Risk- ground come on . . . . . . . . . . . . . . . . . . . . . . . . . . 14 warlike Ad traintage establish coming . . . . . . . . . . . . . . . 16 17 3 Literature check up on 3. 1 3. 2 3. 3 warring Ad wagon traintage . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Pro? tability bankers billments . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Re attempt Gap and General Approach . . . . . . . . . . . . . . . . . . . . 21 22 4 psycho abstract of long-run Pro? tability 4. 1 4. 2 Data savour . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 abstract of Return on Equity Mea received . . . . . . . . . . . . . . . . . . . . 26 4. 2. 1 captain Performers . . . . . . . . . . . . . . . . . . . . . . . . . . 26 iv 4. 2. 2 4. 2. 3 4. 3 4. 4 4. 5 4. 6 abridgment of Performance Persistence . . . . . . . . . . . . . . . . . 28 abridgment of SPP Deciles in gaze of hard roe . . . . . . . . . . . . . . 30 psycho psycho abridgment of SPP Deciles in respect of early(a) fiscal Measures . . . . . 33 Predictability of Long-term Pro? tability . . . . . . . . . . . . . . . . . . . 41 Discussion of the Interim Results . . . . . . . . . . . . . . . . . . . . . . . 43 foodst uff Analysis 4. 6. 1 4. 6. 2 4. 6. 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 Subdivision-speci? c food merchandise Analysis . . . . . . . . . . . . . . . . . 45 Analysis of SPP Deciles in respect of merchandise Multiples . . . . . . . 45 mart Performance Analysis . . . . . . . . . . . . . . . . . . . . . 46 48 5 rank Strategy 5. 1 5. 1. 1 5. 1. 2 5. 1. 3 5. 2 Strategy Composition . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 seek Descriptives and Strategy Composition . . . . . . . . . . . 48 Portfolio organization . . . . . . . . . . . . . . . . . . . . . . . . . . 49 Performance Measurement . . . . . . . . . . . . . . . . . . . . . . . 49 Portfolio Performance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 53 6 Conclusion and Further query 6. 1 6. 2 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53 Further Research . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54 56 i v x xv Bibliography A Data Input B fiscal Measures C Subdivisions D grocery store place Analysis enumerate of send backs 4. 1 4. 2 4. 3 4. 4 4. 5 4. 6 4. 7 4. 8 4. 9 5. 1 COMPUSTAT Items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Distri lullion of Firm geezerhood Distri notwithstandingion of Superior Performance old age . . . . . . . . . . . . . . . . . 27 Probability Distri scarcelyion of Superior Performance Persistence . . . . . . . 29 roe Distri unless(prenominal)ion for distri unlessively SPP Decile . . . . . . . . . . . . . . . . . . . . 31 roe Distribution for all(prenominal) SPP Decile (Subdivision-adjusted) . . . . . . . 32 Financial Measures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 . . . . . . . . . . . . . . . . . . 47 Predictability of Future Pro? tability . . . . . . . . . . . . . . . . . . . . . 42 Market Performance for each SPP Decile Portfolio Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 . . . . . . . . . . . . . . . . . . . . . . . . i ii v A. 1 Data Input for US Companies A. 2 Data Input for Swiss Companies . . . . . . . . . . . . . . . . . . . . . . . B. 1 Calculation of the Financial Measures . . . . . . . . . . . . . . . . . . . . B. 2 SPP Deciles (Subdivision-adjusted) regarding Financial Measures . . . . vii x xi C. Overview of Subdivision . . . . . . . . . . . . . . . . . . . . . . . . . . . . C. 2 Subdivision similitude regarding hard roe . . . . . . . . . . . . . . . . . . . C. 4 Composition of SPP Deciles regarding Subdivisions C. 3 Subdivision Distribution in respect of SPP Deciles . . . . . . . . . . . . . xii . . . . . . . . . . . . x terzetto D. 1 intermediate Price-Earnings Ratio per Subdivision . . . . . . . . . . . . . . . . xvi D. 2 Average Book-to-Market Ratio per Subdivision . . . . . . . . . . . . . . . xvii D. 3 Average Price-Earning Ratio per SPP Decile D. 4 Average Book-to-Market Ratio per SPP Decile . . . . . . . . . . . . . . . xviii . . . . . . . . . . . . . . . nineteen vi List of insures 3. 1 4. 1 4. 2 4. 3 5. 1 trey Slices of Value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 . . . . . . . . . . . . . . . . . . . . . . . 33 . . . . . . . . . . . . . . . . . . 47 Mean hard roe for each SPP Decile SPP Deciles in hurt of Financial Measures . . . . . . . . . . . . . . . . . 40 Market Performance for each SPP Decile Performance of the Value Strategy . . . . . . . . . . . . . . . . . . . . . . 51 . . . . . . . . . . . . . . . . . . . . . . . . . . . xiv C. 1 Subdivision Distribution vii List of Abbreviations vg. B/M capital of the United States CAGR jacketM COGS DA EBITDA etc. e. g. EV FCF IE i. e. initial public offering LT p. a. P/E ROA ROE SGA SMI ST US clean Book-to-Market private-enterprise(a) Ad reinvigorated wavetage f first base rate Compound Annual Growth swan Capital Asset price present Cost of Goods Sold Depreciation and amo rtization Earnings before Interest, Taxes, Depreciation and amortisation et cetera exempli g dimension for example Enterprise Value dethaw Cash F grim Interest put down id est that is Initial Public O? ering Long-term per annum Price-Earnings Return on Assets Return on Equity Selling, General, and Administ balancen Swiss Market Index Short-term United States iii Chapter 1 Introduction 1. 1 Issues, Goals and Limitations all(prenominal) investor is feeling to bar run into offset and parcel out ad avant-gardeced. This does not yet characterize a take account investor. Although honor investing has scram a widely used term, it has been stamped in posticular by a mild base of schoolmans. They associate blood-speci? c bedrock much(prenominal) as a unhopeful P/E proportionality, down in the mouth cash-? ow-to- set ratio, and uplifted B/M ratio to mensurate simple eyes. These nisus-speci? c thoroughs digest break characterizing for look upon investing and embo dy the founding for many an(prenominal) research studies around pry investing (see Damodaran, 2011).For example, Piotroski (2000) developed the F_Score to adjourn losers from winners among cherish stocks (i. e. mellow B/M-stocks). On the part hand, research has been conducted on harvest-festival stocks (i. e. elevated P/E ratio, eminent cash-? ow-to- outlay ratio, and low B/M ratio). Mohanram (2005) developed the GSCORE to separate losers from winners among product stocks, for instance. As a issuance, m any(prenominal) investors feel compelled to decide among prise and ripening stocks. merely, in the heated discussion it is very much ignored that growth has an allude on the repute of a union.This stir of growth varies fit to the straggleicular fellowship from measly to very weighty, and its meet bunghole be negative as hearty as demonstrable. Growth is valuable in fussy if a guild enjoys a durable combative foster and ashes very pro? send b ack all everyplace a long period of time. in that location atomic outcome 18 many rule gives fountainhead-nigh the competitory reward (e. g. Porter, 1998 Shapiro, 1999). However, it has neer been discussed related to tax investing. Only Mauboussin and John countersign (1997) hit raised a discussion several(prenominal) the war-ridden emolument period at bottom the military rating serve healthy of stocks.They institutionalise out in their motif Competitive Advantage Period The pretermit Value Driver that the pertinacity of warring 1 conciliateoff has a massive impact on the repute of a ? rm. Yet at that place is slender lit on this steeric (see Fritz, 2008) and the pot of academics as well as practiti unmatchablers still deposit in general on the di? erentiation between determine and growth stocks. This thesis ordains priority to the belligerent improvement, though, and intends to lay the groundwork for valuing hawkish benefit. It is all-import ant(prenominal) to at a lower placestand how a warring service raise be enamord and if it is believably to predict semipermanent pro? ability, before get-go to look on the growth potential of a beau monde. Hence, the aim of the thesis is con? ned to the predictability of long-term pro? tability and does not intend to think of the competitive reward as much(prenominal)(prenominal). The ? rst enquiry that arises in this place setting is whether it is workable that a club passel exhibit long-term pro? tability. The answer to this question is of interest, as approximately economists chief(prenominal)tain the contrary. harmonise to frugal theory, pro? tability is crocked apprise reverting in a competitive environment (Chan, Karceski and Lakonishiok, 2003). However, human beings teaches us the contrary every day.Mircrosofts products, for instance, argon everything else but innovative. Neverthe little, the company earns ebullient tax returns for decades, and so do early(a)s like The Coca-Cola Company. Thus, this thesis investigates the possibility that a company is able to sustain its competitive usefulness all everyplace several historic period. Thereupon, the second issue addresses whether companies with a durable competitive favor exhibit stock-speci? c native characteristics. thence, the DuPont Identity serves as framework. The companies atomic anatomy 18 classi? ed into deciles in terms of pro? tability (i. e.ROE) and perseveration. Upon this, the companies ar tried for the characteristics regarding mixed baged surveys, which argon derived mainly from the DuPont Identity. wholly companies that be objects of the investigation ar listed in the United States and constrained to manufacturing companies sole(prenominal). The third question addresses whether it is possible to identify companies with a durable competitive profit found on the discover characteristics. Finally, a unanalyzable outline is composed that implements the investigated characteristics of companies with a durable competitive advantage.The schema is conducted on manufacturing companies that be listed on a Swiss stock ex dislodge. 1. 2 Structure and Empirical Approach The present thesis is organized in mainly quaternity parts Chapter 2 brush ups literary productions on apprize investing and points out the all-encom expiry range of set strategies by the guess of four examples. The reader shall gain an overview of economic observe investing (i. e. the short letter of honor investing, disassociation from early(a)wise(a)wise investors, and live value discussion). Additionally, 2 this chapter shall point out the link between value investing and the competitive advantage period.Chapter 3 contains a literature review intimately competitive advantage, pro? tability eyeshades and the tenacity of pro? tability. Moreover, chapter 3 shows the research go as well as the global approach to ? ll this chap. The falsifiable part in chapter 4 deals mainly with ternion issues (1) persistence of prime(prenominal) consummation, (2) characteristics of companies with a competitive advantage, and (3) predictability of prospective long-term pro? tability. Finally, in chapter 5 a value scheme go forth be composed that builds on the insights of chapter 4. 3 Chapter 2 Value InvestingAn Investment Paradigm 2. 1 The Origin of Value InvestingValue investing is an enthronisation paradigm that derives its bank line from the ideas on enthronisation and speculation afterward developed and re? ned by genus Benzoin whole wheat flour and David Dodd through various editions of their known entertain Security Analysis. Starting in 1928, graham flour began to teach a billet on protective cover system analysis at Columbia University. The intelligence emerged from that course, and appe atomic build 18d in 1934. graham flour and Dodd mainly summed up lessons learned from the preceding economic c risis in 1929 and provided readers with inevitable principles and techniques by focussinging on the analysis of natural ? gures to pronounce the value lying bum securities.By publishing the ? rst professional book about investing, they laid the foundation of value investing. In 1949, whole wheat flour published his second book, The sharp Investor, which was described by Warren Bu? ett (Graham, 2003) as by far the best book on investing ever create verbally. It contains mainly the same ideas as in its precursor Security Analysis, but focuses to a greater extent(prenominal) on the emotional aspects of stock commercializes, rather than on analyzing techniques. The techniques to adjust investing opportunities that Graham and Dodd overhear developed ar based on 2 underlying assumptions about the grocery store 1.Market expenditures of securities atomic number 18 somemultiplication subject to signi? slant and unforeseeable movements. 2. As opposed to the e? cient grocery hypothesis, which assumes that all stocks ar mighty termsd by the food grocery at any maven point in time, merchandise outlays of some 4 securities deviate from their inseparable determine from time to time patronage the fact that their underlying economic value do not justify such(prenominal) signi? ejectt deviation. Hence, an intelligent coronation is characterized as paying less for a bail therefore its innate value. Paying more for a stock than its inhering value in the intrust that it elicit be interchange for a juicy set is speculative.In other words, an intelligent investor should not undertake to see next stock market movements instead, such movements provide opportunities to acquire undervalued stocks. Moreover, investors argon encouraged to purchase securities scarcely when the market price is su? ciently down the stairs its infixed value. Graham (2003) referred to this signi? toilett gap between price and intrinsic value as the e dge of arctic, and quali? ed it as central construct of investment. In practice, investors lay down di? erent b rears of safeguard that ar appropriate to their indwelling analysis. A super? ial analysis requires a loftyer brim of safety than a dark and broad analysis. Additionally, market conditions as well as the sizes of funds gives reason for di? erent coasts of safety. Bu? ett states in his letters to the circumstances hiters of Berkshire Hathaway, Inc. in 1992 We subscribe to seen casing to determine simply one salmagundi in this creed Because of both market conditions and our size, we now substitute ,an attractive price for ,a very attractive price (p. 12). Yee (2008) suggests a margin of safety between 10% and 25% of the overlap price. Larger margins are justi? ed for especially bumpy stocks. concordly, the margin of safety is not a hardened safety net but rather a ? exible net with meshes, which must be kosherly adjusted to the speci? c inescapably and conditions from time to time. 2. 2 Value and Other Investors Classic value investorsin the soul of Graham and Doddare rare. Every investor is looking to procure low and snitch ut close to, but what exactly di? erentiates a real value investor from all the other investors? check to Greenwald, Kahn, Sonkin, van Biema (2001), investors croupe be di? erentiated into two main categories. The ? rst category pays no attention to fundamental analysis.Instead, these investors analyze charts in fussy they hold charts to represent trading info (e. g. price movements and volume ? gures). In other words, they intend to predict time to come(a) price movements referring to precedent plaints regardless of its fundamental value (pp. 5-6). Graham and Dodd qualify these investments as eminently speculative. 5 Although the second category focuses admittedly on fundamental analysis, Graham and Dood value investors are still a subtractioncule minority. Greenwald, Kahn, Sonkin, van Biema (2 001) divide these fundamentalists into those who ocus on macroeconomics and those who deal with the microeconomics of securities. Macro-fundamentalists much pursue a top-down approach by take oning ? rst broad economic work outs such as interest rate, in? ation rate, swop rate, unemployment rate, and the like. They indicate economic trends on a broad national or even worldwide basis. Upon this, they decide whether a group or even a speci? c aegis is a? ected by this trend. They do not prefigure the value of singular securities, though. In particular, they monitor policy makers, such as the central bank, and try wherefore to determine the impact on a speci? industry or group of securities. As any other investor, they attempt to forecast price movements before other investors make them and accompanyingly buy low and trade in in boss spirits, but they do not calculate the intrinsic value of an soul(a) hostage straight off (pp. 6-7). Graham and Dodd ascendentally c onstituted value investing as a comprehensive analysis of securities in suppose to bringing close together the intrinsic value as accurately as possible, but in the group of micro-fundamentalists, traditional value investors are still a minority. harmonise to Greenwald, Kahn, Sonkin, van Biema (2001), a more ordinary approach takes the online price of a stock as the point of departure. These investors analyze the storey of a security, considering how the stock price was in? uenced by salmagundis in the underlying economic factors. In a second step they then attempt to predict the probability and impact of such changes in read to forecast future experience of the speci? c security. These mixture of investors lots forecast future sugar or free cash ? ows. If they ? d that their predictions are more optimistic than the markets view, they buy the security if they ? nd that the markets overall expectation is to laid-back likend to their forecast they sell the security (p. 7). Indeed, al about value investorsin the understanding of Graham and Doddstart their analysis from the light into place up by calculating ? rst the intrinsic value of a ? rm and subsequently they suppose the macroeconomic exposure of the ? rmsimilar to the micro-fundamentalists. Although there are some similarities, Graham and Dodd value investors distinguish themselves from micro-fundamentalists in many ways.Greenwald, Kahn, Sonkin, van Biema (2001) mention two reasons wherefore around micro-fundamentalists are not value investors First, they focus on prior and anticipated changes in prices, and not on the take of prices congeneric to underlying values. The second and even more decisive di? erence is the absence of a margin of safety to safeguard investors from unpredictable market movements (pp. 7-8). Accordingly, a true value investor in the classical sense is one whose point of de6 parture is the fundamental selective information of a company. Although macro-economic factors interpret a signi? preservet role in the analysis, they are of secondary magnificence.Furthermore, this investor does not predict future developments of key factors that cause price changes. Instead, a classic value investor values a company based on catamenia fundamentals and buys a security at a bargain price. In the spare-time activity piece, four value strategies are outlined in order to give an idea by the way of illustration. 2. 3 Four Value Strategies by Illustration The range of value strategies is broad copious that it makes it impossible to sum up all of them. Thus, the pastime selection intends to show the colossal variety of aspects that these strategies characterize. These aspects range from fundamental analysis totally (e. . Piotroski) to more sophisticated investigation of companies (e. g. Bu? ett), from concentrated portfolios (e. g. UBS electromagnetic unit Value Focus Fund) to diversi? ed portfolios (e. g. Schloss). 2. 3. 1 Piotroskis F_Score Pi otroski started his calling as a professor at the University of Chicago Graduate School, and since 2007 he has taught history at the Stanford University Graduate School of Business. In April 2000, Piotroski published a paper in the Journal of Accounting research call Value Investing The Use of historical Financial Statement Information to pick Winners from Losers. In this paper, Piotroski classi? es discommode companies in winners and losers by center of nine fundamental criteria. Four criteria (ROA, ? ROA, CFO, and ACCRUAL) re? ect the pro? tability, three criteria (? LEVER, ? LIQUID, future debt obligations, and two criteria (? MARGIN, and ? TURN) measure changes F_Score is composed as follows F _Score =F _ROA + F _ ? ROA + F _CF O + F _ACCRU AL + F _ ? LIQU ID + EQ_OF F ER and EQ_OFFER) measure changes in cap structure and the ? rms ability to meet in the e? ciency of the ? rms operations (Piotroski, 2000, pp. 10-14).The comparability of the + F _ ? M ARGIN + F _ ? T U R N + F _ ? LEV ER (2. 1) where a low F_Score signals a ? rm with less recovering potential and a lavishly score indicates the ? rm as having closelyly merchant shipdid prospects to recover. If a company ful? lls a criteria, 7 the F_criteria equals 1, otherwise 0. With that, Piotroski translates the criteria into binary signals. The sum of all F_criteria subsequently touchs to the F_Score, which can range from a low of 0 to a mettlesome of 9. Due to the fact that it is very di? furore to obtain the maximal score, companies with a minimum score of 8 forget be classi? d as high F_Score whereas as companies with a score of 0 or 1 are classi? ed as low F_Score (Piotroski, 2000, pp. 14-18). Piotroski (2000) reevaluates the stocks every year and decides whether a stock belongs to the losers or to the winners. Finally, the investment strategy buys high F_Score and sells short the low F_Score. This bare(a) strategy generates over two decades an awful 23% average annual return. It o uts that the strategy is withal robust in crisis. In 2008, the American Association of Individual Investors tested the strategy among 50 other investment strategies.With a deed through to the end of 2008 of 32. 6%, it was not only the only stock strategy that would throw off generated positive returns but has besides outperformed the median performance (-41. 7%) of all tested strategies by far (Thorp, 2009). Due to the fact that the portfolio is construed each year on actual data, it is oft the case that the portfolio is turning over correspondingly. one time a ? rm is recovering and the market has recognised the improvements the B/M ratio increases and the stock does not appear any more on the screen, although the company has even more growth potential. That is wherefore many ? ms remain no agelong than one or two geezerhood in the portfolio. Admittedly, buying winners and short-selling losers is one big advantage of the strategy. Companies that are classi? ed as losers wh itethorn transform in a subsequent period from a low F_Score to a high F_Score ? rm. Therefore, the strategy makes double use of a companys development or product line cycle. just the strategy alike implies a disadvantage why should an investor sell an excellent caper that bought at a bargain price? establish on a competitive advantage, the strain could thrive to a superstar and see high returns on the initial investment.A top manager also clutchess the good business organization also when others o? er more than its current value because the manager knows that the business allow contribute also in the future to the ? rm and its shareholders. 2. 3. 2 Walter and Edwin Schloss Walter Schloss and his son Edwin are very conservative value investors whose apothegm is to keep things simple and low-budget. Walter Schloss attended a course of Grahams and worked for the Graham- raw(a)man compact until 1955. Afterward, he ran his own investment ? rm and in 1973 his son Edwin joine d the partnership. From the formation of the peculiar(a) 8 artnership until 2000, the Schloss bemuse provided their investors an annual flux return of 15. 3%. They outperformed the S&P Industrial Index by 4. 2% annually. In other words, they have created a return of 66,200% while the S&P Industrial Index performed 11,800% (Greenwald, Kahn, Sonkin, van Biema, 2001, p. 263). Walter Schloss has been titled by Warren Bu? ett as superinvestor (Forbes, 2008). What distinguishes the Schlosses from other value investors is their simple, and almost rudimentary system choosing stocks. They are among the some investors that stick to the principles of the acquire of value investing.Like Graham, they seek for stocks that are priced depress than their working capital (net assets disconfirming current liabilities). They start their investigation by move their feelers out to stocks that are unloved, tribulationed, and unheeded from other investors. Most of these stocks are in a downward t rend either by a rapid plump or a continually decreasing price. The longer the company has gone(a) through such hard times, the more they call the Schlosss attention. one time they have invested in such a unloved stock they hold it on average for four to ? ve eld until the stock has recovered. more or lesstimes they also sell a stock earlier when they ? d a discover opportunity (Greenwald, Kahn, Sonkin, van Biema, 2001, pp. 266-269). Edwin Schloss focuses on asset values, but is also bequeathing to buy a company that has a virile dough power. Greenwald, Kahn, Sonkin, van Biema (2001) describe the investment philosophy of Edwin Schloss as follows Edwin Schloss pays attention to asset values, but he is more pull up stakesing to look at a companys lolly power. He does want some asset protection. If he ? nds a cheap stock based on normalized earnings power, he in general will not consider it if he has to pay more than three times book value. Depending on his estimate of what the companies can earn, Edwin may still ? nd the stock cheap enough to buy (p. 268). Although Edwin pursues a more liberal value approach by taking the earnings power value into account, he is still very conservative. Both father and son do not include in their military rank do by other than fundamental data. In their analysis, they rely stallionly on annual and quarterly reportsthey keep things simple but with a relatively high margin of safety. The diversi? cation of their portfolio also varies. They do not determine a threshold in advance to which they stick. alike to Warren Bu? ett, their approach leads them to industries, which are not exposed withal much to rapid changes that can undermine the value of these stocks (Greenwald, Kahn, Sonkin, van Biema, 2001, p. 269). 9 2. 3. 3 Warren Bu? ett Warren Bu? ett, who is doubtless the most renowned student of Graham and one of the most prosperous investors, too, pursues a simple strategy, which is complex and di? cult in its e xecution. Bu? ett started his career in Grahams investment ? rm. In 1964, he then bought shares of Berkshire, when its book value per share was $19. 46 and its intrinsic value even lower (Bu? tt and Cunningham, 1997, p. 6). In the period from 1964 to 2009, book value per share increased at an annual compound rate of 20. 3% that is an overall gain of 434,057 %. Adjusted by the S&P with dividends included, Berkshire has a compound annual growth rate of 11%. During the period, Berkshire reported only twice a negative change in book valuein 2001 and 2008compared to the S&P that incurred during the same period eight negative results (Bu? ett, 2009, p. 2). Unlike other investors, Bu? ett feels obliged to share his knowledge that he gained mainly from Graham.Moreover, and opposed to the bulk of successful investors, he teaches his intelligence to the world of investorsand those who are interested in his activity by an annual letter to the shareholders of Berkshire Hathaway, Inc. To attain this knowledge it is not necessary to buy a share of Berkshire Hathaway, Inc. which personify currently over $125,000, nor is it necessary to pay any silver for it. Bu? ett gives access to his letter on the Berkshires website for free. Additionally, in the book called The Essays Of Warren Bu? ettLessons For merged America, Cunningham organizes the information in Bu? tts letters in a thematic way. This book is also accessible online and can be downloaded for free. Bu? ett is aware that he creates potential investment competitors by passing his wisdom to everyone but imitating Bu? etts strategy is everything but simple. His explanations are logical and easy to understand, but the execution requires much experience and a distinctive light of the industry and costume designer sort. In contrast to what Piotroski and other academics and notes managers postulate, Bu? ett buys not only high B/M stocks. This amazes readers in many ways. In particular, because Bu? tt refers in several passages of his letters to Grahams conception. It also contradicts the conceptions of most academics, which assign a high B/M ratio to value stocks. Nonetheless, Bu? ett puts idiom not only on the book value of a company but more on the competitive advantage that a company enjoys. Like Graham, he is looking primarily for very cheap businesses, which are traded far under their intrinsic values. As opposed to Graham, Bu? ett buys not every stock that Mr. Market o? ers him for a bargain price. Additionally, he seeks for businesses with a high competitive advantage.While most ? rms in Grahams portfolio are distressed, Graham diversi? es the risk. Bu? ett, on the other hand, holds that an investor should not buy second-class stocks 10 in the hope that they will recover. The awareness of less investment opportunities does not bother Bu? ett au contraire, he avoids purchases that he will regret later. According to him, every transaction that is based on a impose on _or_ oppress decision is unnecessary, and consequently, to be avoided. One could say that transaction be (e. g. trading be) are tiny, that they carry no weight. But what most people carelessness are taxes.With every transaction, book value is going to be reevaluated and political sciences levy taxes on the saucily value. Holding a share does not cause any taxes, as long as the investment will be sold. Therewith, Bu? ett did not pay taxes as much as his colleagues that trade frequently. each way, Bu? etts preferred holding period is forever. This strategy particularly bene? ts private investors that have bought stocks of Berkshire Hathaway. At to the lowest degree in Switzerland, the government does not impose taxes on capital gains. In the shareholder letter from 1992, Bu? tt breaks his strategy down to a few cornerstones of the valuation plow We select our saleable equity securities in much the way we would evaluate a business for acquirement in its built-inty. We want the business to be one (a) that we can understand (b) with social long-term prospects (c) operated by honest and adequate people and (d) available at a very attractive price (p. 12). First, Bu? ett never buys a business that he does not understand entirely. This requires a full comprehension about the industry such as competitors, value chain, costumers, and so on. For this reason, Bu? tt avoids industries with a high rate of change (e. g. engineering industry). The second criterion that a business must live up to is a competitive advantage. Preferably, he is looking for businesses that have potential to improve their competitive positions in spite of appearance the industry. Third, but less important, Buffett is looking for qualified management. It is less important, because according to him a company with a durable competitive advantage can even operate with middling managers and generate extraordinary returns (Bu? ett and Cunningham, 1997, p. 21). Finally, a margin of safety prevents Warren Bu? tt from mistakes or unforeseeable developments. It seems that soft factors play an important role for him in the valuation go. Correspondingly, fundamental analysis is only half the battle. The succeeding(a) quote from Warren Bu? ett in the context of the hostile takeover of RJR Nabisco outlines the kind of business Bu? ett likes Ill tell you why I like the cigarette business. It cost a penny to make. Sell it for a dollar. Its addictive. And theres fantastic strike off loyalty (Burrough and Helyar, 1991, p. 218). 11 For this reason, Bu? ett also accepts businesses that do not always have a high B/M ratio.Moreover, he seeks for businesses that have potential for improvements and buys them at a relative bargain price in the hope the business remains its advantage and cushions high returns in the future. 2. 3. 4 UBS EMU Value Focus Fund The UBS EMU Value Focus Fund is a highly concentrated and actively managed European equity fund, which holds maximally ten stocks, where each has an initial weight of 10%. The investment process is divided into seven travel (Screening process Short list Pre collectible application program Full repayable application program Watch list Entry, increase/ get down position and Exit).First, the stock universe is screened by a quantitative approach (EV/EBITDA, P/E, B/M, FCF yield) and by a soft approach. Second, in the callable diligence process the aggroup meets the management of the butt company, they compare the company within the peer group, and determine the fair value and entry level. The team gives particular importance to the within-industry comparisons and a margin of safety of 30%. After the stock is over the due diligence, the stock is deposited on the watch list until the entry level is reached. The stock remains in the portfolio until the stock has recovered and the calculated air value is reached and the weight of the stock is less than 15% of the portfolio. If there is a more promise investment opportunity, a position will be changed. Based on the high portfolio concentration, a sector limitation makes sure that stocks which are stemming from the same sector do not surpass the threshold of 33%. If a stocks price plunges after its purchase more than 15%, the management also pulls the trigger for safety reasons and sells the stock (UBS, 2010). The strategy of the UBS EMU Value Focus Fund equals in some aspects Warren Bu? etts strategy.Both distinguish themselves from Piotroskis and Schlossers strategy insofar as they include a due diligence process that goes beyond a fundamental analysis (e. g. valuation of the management). Furthermore, both strategies do not strive for diversi? cation, although the UBS EMU Value Focus Fund includes some risk management factors that compel the management to exit in certain circumstances. Warren Bu? ett, on the other hand, restricts himself by avoiding complex businesses. The two strategies also di? er insofar as the UBS EMU Value Focus Fund has a relativel y short investment horizon of 18 months, whereas Bu? tt holds a stock over decades. 12 2. 4 Value vs GrowthFuzzy Thinking Although there is a broad variety of value strategies, it seems that the discussion about value investing leaves little room for interpretation. Nowadays, the bulk of academics di? erentiate between value and growth (glamour) stocks. They ? nd that stock-speci? c fundamental attributes such as a low P/E ratio (Basu, 1977 Ja? e, Keim, and Wester? eld, 1989), low cash-? ow-to-price ratio (Chan, Hamao, and Lakonishok, 1991), and high B/M ratio (Rosenberg, Reid, and Lanstein, 1985 Fama and french, 1992) earn substantially high returns than glamour stocks.Hence, often one feels compelled to decide between value investing and growth investing. In particular, academic work has upheld the distinction, and thus, has had a strong impact on investment professionals. Furthermore, academic research developed style-speci? c benchmarks (Chan and Lakonishok, 2004, p. 71). In t hat sense, value stocks are referred to a high B/M ratio, a low P/E ratio and a high dividend yield, whereas opposite characteristicsa low B/M ratio, a high P/E ratio and a low dividend yieldare assign to growth stocks. Some professional investment managers even see a mix of the two approaches as a offend cross-dressing.Among others, Warren Bu? ett labels this classi? cation as fuzzy thinking. Bu? ett argues that growth is always a component in the calculation of value. Nonetheless, he does not nonperformance that the importance of the growth component varies from negligible to very important and its impact can be positive as well as negative. Thus, a low B/M ratio, a high P/E ratio, and a low dividend yield is not per se inconsistent with value purchases. Business growth has often a positive impact on value but tells us little about the intrinsic value of growth (Bu? ett, 1992, p. 12). only growth is not created equal, and thus must be di? erentiated.There is also value-destroy ing growth, which is not worth a penny. Bu? ett goes even further and scrutinizes the term value investing as such. According to him, the term is redundant because investing implies to pay less then the value of something (Bu? ett and Cunningham, 1998, p. 85). The origin of this fuzzy thinking constitutes the value unusual person that will be discussed in the following section. 2. 5 Value Anomaly already Graham and Dodd (2008) hint at the diversity between market price and intrinsic value and the fact that the market often underestimates value stocks. This mispricing is called in the literature Value Anomaly.In the following section three explanations are outlined i) a behavioural approach, ii) a risk-based approach, and iii) a competitive advantage based approach. 13 2. 5. 1 Behavioral Approach According to Graham and Dodd (2008), the irrational behavior of market participants can drive the price of a security in the wrong direction. As Graham outlined in his book the Intelligent Investor, emotions take part in the participants decisions, thus he rejects the E? cient-Market Hypothesis as well as the assumption of gentlemans gentleman Oeconomicus. Market participants are swayed either by positive emotions pushing up prices, or uncertainty and ? rce emotions cause a pooh-pooh in prices. In general, both results in ine? cient and undesirable market upshots. De Bondt and Thaler (1985) already ? nd evidence that markets overact to un pass judgment and melodramatic news events. Moreover, contagion ampli? es this process of counter-productive behavior, taking a central part of the game, especially in crisis when panics gain the upper berth hand and investors disinvest despite of breathing reasons to act to the contrary. 1 Not only irrational behavior induces a variableness between market prices and intrinsic value. Discrepancies can also result from ? ms of little interest, and thus, small liquidity. In particular, small companies deign through the screenin g raster of professional investors. erst a professional investor manages a fund of a certain size, small investments are out of range. First, small companies are like gold dust, as a consequence thereof di? cult to ? nd, and second, the monitoring costs come along with the military issue of investments, which makes such companies unappealing. 2. 5. 2 Risk-based Approach Whereas Graham showed that behavioral aspects color in markets and cause a gap between intrinsic value and market value, many academics hold that the di? rence does not take contradict the e? cient-market hypothesis. Some argue that high returns simply compensate higher(prenominal) risk (Fama and French, 1994). As basis of this line of reasoning line served the Capital Asset Pricing Model ( working capitalM), which was developed independently by Sharpe (1964) and Linter (1965) in the 60s based on Markovitzs portfolio theory. The model shows the gumminess between the expected return of individual securities an d systematic risk (market risk). Whereby ? of a security is a parameter describing the relation of its return with that of the overall market.The equation of the CAPM can be summarized as follows 1 Cella, Ellul, and Giannetti (2010) write in their paper about Investors Horizon and the Ampli? cation of Market Shocks that stocks which are held in a gigantic part by short-term investors are more likely to plunge under their intrinsic value. They also instance that fund managers often follow travails, which do not lead to optimal purchases or sales. 14 E(Ri ) = Rf + ? i (E(Rm ) ? Rf ) (2. 2) where E(Ri ) is the expected return of a speci? c asset, Rf is the riskless return rate, and E(Rm ) is the expected return of the market.Already Rosenberg, Reid, and Lanstein (1985) give rise to the assumption that the CAPM can not fully explain the correlativity between expected returns and the risk of an individual security. As a one factor model implies, the CAPM oversimpli? es the complex ma rket. Therefore, Fama and French (1992) introduced a three-factor model that is an extension of the CAPM. Basically, they better the CAPM by adding two more factors (i) they elevated between high and low B/M ratio, and (ii) classi? ed stocks according to market capitalization (price per stock times number of shares outstanding).The equation of the extended CAPM can be summarized as following r = Rf + (Km ? Rf ) + bs ? SM B + bv ? HM L + ? (2. 3) where Rf is the risk-free return rate, Km is the return of the entire stock market, SM B (small minus big) is the di? erence between small and big ? rms according to their market capitalization, HM L (high minus low) is the di? erence between high and low B/M ? rms, bs is the corresponding coe? cient to SM B, and bv is the corresponding coe? cient to HM L. Based on this, Fama and French (1992) argue that high B/M ? rms prospects are judged relative severely to ? ms with low B/M ratios. As already postulated by Chan and subgenus Chen (1991 ), Fama and French also interpret high B/M ? rms as ? nancially distressed (see also Piotroski, 2000). They adduce the explanation that a high B/M ratio inheres in a relatively high ? rms market leverage compared to its book leverage. Furthermore, they ? nd that during some periods (at least ? ve years) low B/M ? rms remain more pro? table than high B/M ? rms. Fama and French (1992) argue that more risk is inherent with a higher B/M ratio. In other words, value stocks are riskier than glamour stocks. oppose to this, Gri? and Lemmon (2002) show that large returns of high B/M ? rms are inconsistent with a risk-based explanation. Arshanapalli et al. (1998) show 15 that value stocks generally have a risk-adjusted performance superscript to that of growth stocks (p. 23). Thus, the value anomalousness can be traced back to a mispricing of stocks due to overly optimistic valuations of glamour ? rms. Once this mispricing is revealed, these ? rms earn negative superfluity returns. Accordi ng to Chan and Lakonishok (2004), investors, in particular professional investment managers, focus their attention on unmingled glamour stocks while stock prices of high B/M ? ms plunge under their fundamental value. Hence, investing in high B/M ? rms is likely to be a rewarded long-term investment strategy (p. 85). Moreover, Anderson and Smith (2006) ? nd that a portfolio of the most admirable companies substantially outperforms the market, and thus contradicts the e? cient market hypothesis. As a consequence, the risk-based explanation has scattered many of its supporters over the last years and the value anomaly remained unexplained. 2. 5. 3 Competitive Advantage Based ApproachAlthough it is plausibly the closest explanation, academics rarely make the competitive advantage of a company accountable for the superior performance and scanty returns of a company. According to them, competitive advantages must theoretically fade away. But in reality this is not always the case. New academic research indicates that the risk number one wood refers more to the riskiness of losing the competitive advantage (Mauboussin and Johnson, 1997 Greenwald, Kahn, Sonkin, and van Biema, 2001). This could be the case if new competitors enter the market and/or in industries where the rate of technology changes is high.On the one hand, new technologies open up new opportunities for existent players, but on the other hand, they also carry the risk that entrants come up with new products and technologies that force existing players to keep up with the changes. This kind of competition is often quite expensive and indicates that profusion returns can be wrest away easily. Therefore the risk of businesses, which are exposed to such changes, is higher than of businesses that sell products with marginal changes. Of course, some companies even maintain their competitive advantages in fast-changing industries over decades (e. g. Microsoft, Inc. r maybe Facebook) due to customer reten tion and network e? ects, which create switching costs on the request side and enormous costs to enter the market on the leave side. The mispricing of such companies that exhibit a durable competitive advantage originates from the complexity in identifying such companies in advance. The following chapter elaborates a bit more on this and points out the state of the art as well as the existing research gap. 16 Chapter 3 Literature Review 3. 1 Competitive Advantage Competitive advantage is a central theme in value investing that has often gone forgotten in the heated tip over about the value anomaly.Although an immense number of books and papers have been written about competitive advantage, it has not found proper entrance into the value discussion. Nonetheless, it is an essential part in the valuation process of a company. Greenwald, Kahn, Sonkin, and van Biema (2001) break the Graham and Dodd framework down to three main sources of value (see Figure 3. 1) (1) the asset value, (2 ) the earning power value, and (3) the value of growth. All three elements must be involved in the calculation of valuealso growth (pp. 35-47). The asset value equals the reproduction costs of the assets and is therefore the most reliable source of value.The second most reliable measure of a ? rms intrinsic value is the value of its current earnings (earning power value). The earning power value equals current earnings divided by the cost of capital, assuming that the growth rate is slide fastener. The deviation between the asset value and the earning power value equals the franchise of a company. What they call Franchise is referring to the competitive advantage and describes the same phenomenonthe ability to earn more on a ? rms assets than it is possible under gross(a) competition (p. 41). The least reliable source of value is growth, because it is the most di? ult element of value to estimate and therefore obtains last priority in the valuation process. According to Greenwald, Kahn, Sonkin, and van Biema (2001), growth is only valuable if it is within the franchise. Correspondingly, growth that only increases revenues, earnings or the assets of a ? rm does not create additional value. Growth is valuable only if a company can extend its pro? tability by the means of its competitive advantage. 17 Figure 3. 1 Three Slices of Value Nevertheless, excess returns, which exceed the cost of reproducing a ? rms assets, are under the assumption of perfect competition not possible (see Mankiw, 2004, pp. 4-65). As soon as a company earns more on its assets than its reproduction cost, it will attract new competitors, and thus, erode the excess returns until the earning power value equals the value of assets. However that may be, economic theory about perfect competition is seldom the case in reality. Some companies have enjoyed a competitive advantage even over decades (e. g. The Coca-Cola Company or Microsoft, Inc). There have been many research studies conducted on competitive advantage and a huge number of device drivers have been found. 1 Without going too deeply into the di? rent drivers, it might be worth to mention the most coarse searching costs, switching costs, and economies of scale. By the means of switching costs, a company can create a lock-in once soul has chosen a technology, switching can be very expensive (Shapiro 1999, pp. 11-13). Microsoft, Inc. is probably the best example to illustrate a lock-in e? ect. Changing from MS O? ce Word to another piece program is costly. It raises the annoying problem that the formats are not compatible, and thus requires much e? ort that is more costly than remaining with MS O? ce Word. Switching costs can hange over time as buyers alter their products Thomas Fritz (2008) has conducted an extensive literature review of over 140 empirical investigations published between 1951 and 2007. He comes to the last that the di? erent drivers for a competitive advantage are as manifold as the number of studies and that there is no such as a universally valid driver as one could assume. 1 18 and processes (Porter, 1998, p. 296). Another kind of lock-in occurs by search costs. Search costs occur as buyers and sellers attempt to ? nd each other and establish a business family (Shapiro, 1999, p. 26). Finally, a competitive advantage arises by economies of scale. Porter (1998) describes economies of scale as the ability to produce more e? ciently at a larger volume (p. 70). But one should note that economies of scale by themselves do not constitute a competitive advantage. In addition to economies of scale, it needs a demand advantage, which does not have to be big. Once a demand advantage exists, economies of scale in the cost structure will transform superior market share into lower costs, higher margins, and higher pro? tability (Greenwald, Kahn, Sonkin, and van Biema, 2001, p. 0). Correspondingly, products or services that pro? t from high purchase frequency often enjoy a deman d advantage that derives from a habit (e. g. the cigarette industry). Still, it is not written in stone that a competitive advantage lasts for an in? nite period if once achieved. Although a vast number of studies examined the attributes of a ? rm with a competitive advantage, considerably less studies have elaborated on the sustainability of a competitive advantage and the reason why some ? rms enjoy a competitive advantage for decades and other only over a short period. The in? ence of the Competitive Advantage Period (CAP) on the valuation of a ? rms shares has also been by and large ignored by the literature, although the picture derives its origin from Miller and Modigliani (1961). The term itself appeared in the 90s in numerous writings. The concept that was developed in Miller and Modigliani (1961)s seminal paper on valuation can be summarized as follows V alue = N OP AT I(ROIC ? W ACC)CAP + W ACC (W ACC) (1 + W ACC) (3. 1) where NOPAT represents net operating pro? t after t ax, WACC represents weighted average cost of capital, I represents annualized new investment in working and ? ed capital, ROIC represents rate of return on invested capital, and CAP represents the competitive advantage period. The CAP can be identi? ed, as shown in Equation 3. 1, as a fundamental value driver among risk and cash ? ow. In order to get the CAP we can rearrange Equation 3. 1 as follows CAP = V alue (W ACC ? N OP AT ) (1 + W ACC) I (ROIC ? W ACC) (3. 2) As Mauboussin and Johnson (1997) vagabond correctly, this equation has some shortcomings that constrain its realistic scope, but it illustrates how the CAP can be con19 ceptualized in the valuation process.According to Mauboussin and Johnson, the key determinants of CAP can be impoundd by a handful of drivers. The ? rst key determinant is ROIC that re? ects the competitive position within an industry, whereas a high ROIC indicates a strong competitive position. Generally, it is costly for competitors to snatch competi tive advantage from high-return companies. The second key determinant is as important, and measures the rate of industry change. High returns in a fastgrowing industry do not have the same signi? cance as returns created in a stagnated or even shoplifting industry. The third driver re? cts the barriers to entry, which is essential for sustainable high returns on invested capital (pp. 68-69). 3. 2 Pro? tability Measurements High-return companies, which have returns in excess of the cost of capital, also capture Warren Bu? etts attention. As Mauboussin and Johnson (1997) note, a constant CAP is contrary to economic theory, but it might be achieved through outstanding management. However, companies with a stable CAP are everything but simple to ? nd (p. 71). As mentioned above, Equation 3. 2 has particular practical scope thus, in order to evade this problem other performance measures have to be found.In practice, there are many di? erent performance measures, but this thesis will fo cus in particular on ROE. Fritz (2008) shows in his investigation that ROA and ROE are two of the most frequently applied accounting-based performance measures (p. 31) regarding competitive advantage investigations. Both are pro? tability measurements and capture the relation of return on applied capital. ROE measures how much pro? t a company generates for shareholders while ROA states how e? cient the asset management is. The higher the pro? tability, the better is a ? rms preservation and the stronger its competitive advantage.Nowadays, less attention is gainful to the ROE. Sharpe, Alexander and Bailey (1999) mention the ROE only marginally and Spremann (2007) devote less than one page to it. Nonetheless, ROE has not lost its usability entirely, but Spremann sees the reason for the decreasing importance in the fact that shareholders orient themselves more toward market values instead of book values. Provided that, market ratios (e. g. P/E ratio) gained progressively attention. But since superior earnings are generated based on a competitive advantage, it must remain a core theme in the valuation process, in particular for the long-term investor.Pro? tability measurements tend to change over time thus, forecasting future profitability is a task that many practitioners and academics would label speculative. On 20 the other side, pro? tability is mean reverting in a competitive environment. Thus, nothing is simpler than predicting long-term pro? tability, which must be zero in the long run. Freeman, Ohlson and Penman (1982) already found evidence that ROE follows a mean-reverting process. Almost twenty years later, Fama and French (2000) found strong evidence of mean-reverting process in terms of pro? ability and estimated a rate of mean degeneration of 38% per year. Assuming a ? rms ROE of 20% above mean will shrink below one percent after ten years and therefore lose its competitive advantage,this corresponds to 38% reversion rate. This is also in line w ith Chan, Karceski and Lakonishok (2003)s expectation that superior operating performance cannot be preserve for more than ten consecutive years. Furthermore, Fama and French (2000) show that mean reversion is express below its mean and when it is further from its mean in either direction. However, Penman (1991) scrutinizes ROE regarding its su? iency to predict future pro? tability. According to him, ROE indeed exhibits a mean-reverting tendency, but it proves a too-strong persistence over time. Hence, he suggests that B/M multiples are better indicators of future ROE than current ROE, and a combination of both increases persistence in ROE even further. 3. 3 Research Gap and General Approach Some research has been conducted about predicting future pro? tability. Though these studies deal in particular with the issue of predicting the near future. Thus, this study claims high expectations by predicting long-term pro? ability, with the notion that longterm means in this study a per iod of ten years. There are several papers that postulate a mean reversion of pro? tability measures (Freeman, Ohlson and Penman, 1982 Penman, 1991 Lipe and Kormendi, 1994 Fama and French, 2000 Nissim and Penman, 2001). Soliman (2008) forecasts out-of- pattern future changes in RNOA ? ve years into the future by applying the DuPont analysis. All these studies have in common that they investigate one ? nancial measure (or two) in time. Thus, this study intends to close these two gaps. In the following chapter, ? rst, several ? ancial measures will be considered regarding companies with a durable competitive advantage, and second, it will be hypothesized that predicting long-term pro? tability (up to ten years) is possible. 21 Chapter 4 Analysis of Long-term Pro? tability The following chapter aims to determine indicators in order to forecast long-term profitability. Thus, the chapter is structure in four sections Section 4. 1 describes the data sample distribution and the adjustmen ts. Section 4. 2 deals with the classi? cation of superior performers in terms of ROE and analysis of the persistence of superior performance.Subsequently, the analysis of ROE performance deciles according to persistence is centre stage. Section 4. 3 involves the analysis of further ? nancial measures regarding the ROE persistence deciles. The start point of this section is the DuPont Identity, which breaks the ROE measure down into further ? nancial measures. The aim of this section is to ? nd speci? c characteristics that will serve in Section 4. 4 to separate ? rms in advance according to future superior performance years. Finally, Section 4. 6 investigates the ROE persistence deciles according to market ratios (i. e. B/M ratio and P/E ratio). . 1 Data Sample A reliable analysis depends to a great extent on the size of the data sample. The size, in turn, is determined by company years (i. e. number of companies times number of years) that are considered. All data in this study o riginates from COMPUSTAT if there is no explicit mention of it. COMPUSTAT provides historical data of US companies with available historical annual data from 1950. For this study, the dataset on COMPUSTAT was screened for all companies that were listed on any stock exchange in the United States (including quiet companies) with a special election SIC classi? ation between 2000 and 3999. The data was selected at the end of each calendar year between 1979 and 2009. Hence, historical data for the following investigation is available for thirty-one years. Similar to McGahan and Porter (2002), all records from the dataset that do not 22 contain a primary SIC designation after parentage or any that were not within the stated range were dropped out of the sample. The restriction to companies containing a primary SIC classi? cation between 2000-3999 corresponds to the manufacturing division, which contains twenty subdivisions (see Table C. ). Focusing on one division has the advantage th at the ? rms have a similar value chain. All manufacturing ? rms have in common that they purchase raw materials or components and manufacture these materials to more mature products, which will be sold to a seller or for further processing. Seldom, do these companies sell the product directly to the ? nal consumer. Drawing comparisons among ? rms with similarities regarding their value chain is simpler and also more reliable. Given this restriction to manufacturing companies, 3844 companies are available. It is art of a dynamic industry process that listed companies disappear and new companies appear on trading lists of stock exchanges. This fact leads to certain problems, which were not always considered aright in prior studies. For the sake of convenience, some researchers have considered only companies with available data for the entire sample period. Thus, they have excluded companies that were passing through either a delisting or an initial public o? ering ( initial public o ffering). Others have ignored in their investigation only inactive companies. In this category fall two cases, in particular each a company did not experience the entire period due to ? ancial distress and subsequent bankruptcy or it was the target of an acquisition by another company. Ignoring inactive companies would distort the relative ? nancial performance of other companies in the same group in the same period. Not least, since pro? tability depends on competition, it is important to include inactive companies to focus the e? ect of survivorship bias as it is important to take new competitors into consideration. COMPUSTAT provides the filling to also include inactive companies into the sample. galore(postnominal) researchers assume that newly-listed companies show high growth rates that are not economically signi? ant for the comparison to other companies, and thus, lead to distortions (see McGahan and Porter, 2002 Rumelt, 1991 Schmalensee, 1985). Hence, they exclude all companies from the data sample that exhibit less than $10 million in sales. Following these researchers, the sample in this study contains only companies with sales of at least $10 million during the entire sample period. All companies that come below this threshold for any year in the sample period were excluded. After these adjustments, the sample comprises 1905 companies.In order to avoid the possibility that companies distort the calculation of growth rates through short-term measurements, companies with less than ? ve years of ? nancial history were excluded. There is evidence that suggests that window-dressing before an IPO a? ects the performance of subsequent years after the IPO. For instance, Jain and 23 Kini (1994) ? nd that IPO ? rms exhibit a gloaming in post-issue operating performance (see also Degeorge and Zeckhauser, 1993). Therefore, only ? rms with at least ? ve years of ? nancial data on COMPUSTAT items listed in Table 4. 1 were included. Table 4. 1 COMPUSTAT It ems This table shows all items hat are downloaded from COMPUSTAT. A more detailed description is presumption in Appendix A. Companies that have absentminded data on one of these items are excluded fr